EXCHANGE 


Report  of  Proceedings 


OF  THE 


AMERICAN 

MINING 

CONGRESS 


Fifteenth  Annual  Session 

Spokane,  Washington,   Nov.  25-29,  1912 


Published    by   the   American    Mining   Congress 
At  the  Office  of  the  Secretary  Denver,  Colo.,  1911 


Report  of  Proceedings 

of  the 

American  Mining 
Congress 


Fifteenth  Annual  Session 

Spokane,  Wash*,  Nov*  25-29 

19J2 


*»  *  *  * 

>»•-'•*  * 


Published  by  the  American  Mining  Congress 

At  the  Office  of  the  Secretary,  Denver,  Colo.,  1913 


ttf 


PREVIOUS  SESSIONS  OF  CONGRESS. 


DATE. 

CITY. 

PRESIDENT. 

ADDRESS. 

1st 

July, 

1897  » 

Denver,  Colo. 

Hon.  Alva  Adams, 

Pueblo,  Colo. 

1st 

July, 

1897 

Denver,  Colo. 

Hon.  L.  Brandford  Prince, 

Santa  Fe,  N.  M. 

2d 

July, 

1898 

Salt  Lake  City,  Utah. 

Hon.  L.  Brandford  Prince, 

Santa  Fe,  N.  M. 

3d 

July, 

1899  2 

Milwaukee,  Wis. 

Col.  B.  F.  Montgomery, 

Cripple  Creek,  Colo. 

3d 

June, 

1900 

Milwaukee,  Wis. 

Col.  B.  F.  Montgomery, 

Cripple  Creek,  Colo. 

4th 

July, 

1901 

Boise,  Idaho. 

Hon.  L.  Bradford  Prince, 

Santa  Fe,  N.  M. 

5th 

Sept., 

1902 

Butte,  Mont. 

E.  L.  Shafner. 

Cleveland,  Ohio. 

6th 

Sept., 

1903 

Deadwood  ana 

Lead,  S.  D. 

Hon.  J.  H.  Richards, 

Boise,  Idaho. 

7th 

Aug., 

1904 

Portland,  Ore. 

Hon.  J.  H.  Richards, 

Boise,  Idaho. 

8th 

Nov., 

1905 

El  Paso,  Texas. 

Hon.  J.  H.  Richards, 

Boise,  Idaho. 

9th 

Oct., 

1906 

Denver,  Colo. 

Hon.  J.  H.  Richards, 

Boise,  Idaho. 

10th 

Nov., 

1907 

Joplin,  Mo. 

Hon.  J.  H.  Richards, 

Boise,  Idaho. 

llth 

Dec., 

1908 

Pittsburgh,  Pa. 

Hon.  J.  H.  Richards, 

Boise,  Idaho. 

12th 

Oct., 

1909 

Goldfleld,  Nev. 

Hon.  J.  H.  Richards, 

Boise,  Idaho. 

13th 

Oct., 

1910 

Los  Angeles,  Cal. 

Dr.  E.  R.  Buckley, 

Rolla,  Mo. 

14th 

Oct., 

1911 

Chicago,   111. 

John  Dern, 

Salt  Lake  City,  Utah. 

15th 

Nov., 

1912 

Spokane,  Wash. 

Samuel  A.  Taylor, 

Pittsburgh,  Pa. 

1  Temporary. 

2Passed  to  June,  1900. 


INDEX 


Auditing  Committee,  Report  of 127 

Bureau  of  Mines,  Statement  of  Director 118 

Directors,  Election  of 132 

Financial  Statement  of  Secretary 126 

Financing  Future  Work,  Suggestions  for 101 

Members,  Annual  Meeting  of 126 

Members,  Adjourned  Meeting  of 132 

Mineral  Land  Laws,  Report  of  Committee  on 79 

Nominating  Committee,  Report  of 132 

Permanent  Home  of  A.  M.  C.,  Discussion 133 

Protection  of  Small  Investors  in  Mining  Stock,  Discussion  of 37 

Public  Land  Policy,  Discussion 82 

Resolutions,  Discussion  Incident  to  Action  on 75 

Resolutions,  Membership  of  Committee  on 31 

Scope  and  Finance,  Committee  on,  Discussion 130 

Standardization  of  Electrical  Equipment,  Report  of  Committee 112 

SPEAKERS. 

Allen,  W.  R 29,  40,  56,  76,  99,  112,  120 

Bain,  H.  Foster 33 

Baldwin,  George  E 65 

Bartlett,  M 51,  97,  106 

Brown,  H.  B 120 

Brunton,  D.  W 122 

Burton,  John  R 32 

Callbreath,  J.  F 24,  37,  42,  57,  82,  103,  126 

Clagstone,   Paul 25 

Collins,  G.  A 21 

Cunningham,   Clarence 101,  109 

Daugherty,  Robert  L 34 

Davis  Clark 59,  60,  66 

Davis,  I.  F 47,  110 

Decker,  P.  D 47 

Dennis,  G.  B 1,  18,  20,  21,  31,  87,  105,  120,  132 

Dennis,  W.  B 75,  86 

Dern,  George  H 35,  111 

Dewey,  A.  M 75,  76 

Galiger,  59,  60,  86 

Harriman,  H.  R 30,  90 

Hicks,  Rev.  Charles 1 

Hindley,  W.  J 15 

Insinger,   Robert 18 

Jacobs,   E 22 

Johnson,  C.  S 41,  97,  100 

Joslin,  Falcon 167 

Lawrie,  H.  N 41,  56 

Leehey,  M.  D 71,  185 

McBride,  A.  W 110 

McDonald,   T.   P ' 88,  90 

McNaughton,  J.  P 30 

Merrill,  Joseph  S 96 

Millard,  B.  F'. 53,  109,  120 

Murphy,  George 47,  99 

Neill,  Robert 42,  69,  94,  95,  99,  110,  124,  125 

Norman,  Sidney 20 

O'Leary,  110 


246108 


£::/!'     -     •:    :       •'•- 
4  -..!.  INDEX 

Parks,  H.  M 35 

Patterson,  A.  W 51 

Perkins,  W.  T 37,  61,  76,  90,  91,  95,  134 

Rae,  Clarence 45 

Ross,  David 26,  76,  92,  237 

Samuels,  H.  F 75,  88,  120 

Schwartz,  H.  H 59,  60,  61,  71,  75 

Shackelford,  W.  B 28 

Silcox,  F.  A 59 

Spaulding,  E.  D 58 

Stanard,  F.  H 41,  65,  93,  94 

Steele,  J.  L 70,  79 

Taylor,  S.  A 21,   101,  136 

Volkmar,  H.  S 46,  100,  105,  125 

Watson,  Thomas  L 36 

Wallace,  John  H 121,  225 

White,  A.  M 31 

White,  J.  W.,  Rev ;  123 

Wolcott,  E.  L 24 

Wright,  Burton  A 34 


INDEX 


ADDRESSES. 

Page 

Annual  Address  of  President Samuel  A.  Taylor,  Pittsburgh,  Pa.  136 

National  Forests  and  Development  of  Natural  Resources,  The 

Henry  S.  Graves,  Washington,  D.  C.  145 

Protection  of  Investors  in  Mining  Stocks.  .  W.  H.  Storms,  San  Francisco,  Gal.  155 

Relative  Hazard  of  All  Vocations  in  Comparison  with  Mining,  The 

Hywel  Davies,  Louisville,  Ky.  159 

Government  Construction  of  Railroads  and  Leasing  of  Coal  Lands 

Falcon  Joslin,  Fairbanks,  Alaska  167 

A  "Day  in  Court"  for  the  Alaska  Coal  Claimants 

Maurice  D.  Leehey,  Seattle,  Wash.  185 

Law  Enforcement  for  Alaska George  E.  Baldwin,  V aides,  Alaska  194 

Transportation  Facilities  in  Alaska ....  Duncan  M.  Stewart,  Seward,  Alaska  200 

Leasing  of  Mineral  Lands,  The William  Griffith,  Scranton,  Pa.  217 

Mineral  Land  Laws  and  the  Decadence  of  Prospecting 

George  W.  Riter,  Salt  Lake  City  221 

Washington  Compensation  Act,  The John  H.  Wallace,  Olympia,  Wash.  225 

Workmen's  Compensation Edward  T.  Bent,  Chicago,  III.  232 

Workmen's  Compensation David  Ross,  Springfield,  III.  237 

Workmen's  Compensation S.  A.  Taylor,  Pittsburgh,  Pa.  246 


RESOLUTIONS 


NO.  SUBJECT.  INTRODUCED  BY.     PAGE.       DISPOSITION.     PAGE. 

1  Secretary   of   Interior A.  M.  White 42  Substitute  Adopted . .  77 

2  Secretary  of  Interior W.    E.    Allen 43  Substitute  Adopted..  77 

3  Appropriation — Bureau   of   Cen-    Advisory  Committee, 

8US  Mining   Statistics 43  Adopted   77 

4  Com.   on   Mine  Taxation A.   M.   White 43  Adopted   78 

5  Public  Roads,   Forest  Reserves ...  Butte  Section  A.  M.  C-.  43  Adopted   78 

6  Relation   of    Mining    and  Other 

Industries    Butte  Section  A.  M.  C . .  44  Tabled    78 

7  Protection  of   Mining  Investors .. Butte  Section  A.  M.  C..  44  Substitute   Adopted..  93 

8  Control  of  Mining  Lands Mark   Bartlett 45  Substitute  Adopted..  106 

9  Alaska    Coal    Claims Robert    Neil 61  Substitute  Adopted..  79 

10  Mt.   Olympus  Nat.  Monument F.    H.    Stanard 61  Substitute   Adopted..  93 

11  Appeals    from    Decisions    Land 

Office    H.    H.    Schwartz 62  Adopted   98 

llaU.  S.  Assay  Office W.    T.    Perkins 64  Adopted   

12  Idaho    Geological    Survey C.    A.    Stewart.. 64  Tabled    99 

13  Leasing    Public   Lands W.    G.    Conrad 64  Substitute  Adopted..  106 

14  Right   of    Way   on    Public    and 

Private     Lands C.    W.    Goodale 86  Adopted   99 

15  Bureau   of  Mines H.    N.    Lawrie 86  Substitute  Adopted. .  97 

16  Metallurgical    Stations J.   F.   Merrill 88  Withdrawn   

17  Maintenance    of    State    Mining 

Schools     H.  M.   Parks 88  Adopted    »7 

18  Alaskan    Legislation T.   P.   McDonald 89  Adopted   97 

19  Government   Sampling  Works Clarence    Rae 89  Substitute  Adopted..  98 

21  Lead  and  Zinc  Tariff J.    M.    Malang 89  Adopted   107 

22  Workmen's    Compensation David    Ross 92  Adopted     108 

23  Alaskan    Railroads Henry  R.    Harriman 100  Adopted   107 

24  Public  Roads  Through  Reserves.  .George    Murphy 104 

20  Revision  of  Federal  Mining  Laws. Resolution  Committee 106  Adopted  as  substitute 

for     resolutions     8 
and   13 106 

25  Finance    Committee Resolution    Committee ...  109  Adopted   Ill 

27    Thanks   Resolution    Committee. .  .119  Adopted   120 

26  Loss  of  Members  by  Death Resolution    Committee. .  .121  Adopted   121 


OFFICIAL  ROSTER,  1912 


OFFICERS. 

SAMUEL  A.  TAYLOR,  President.  D.  W.  BRUNTON,  1st  Vice-Pres. 

E.  A.  MONTGOMERY,   2d  Vice-Pies.        CARL  SCHOLZ,  3d  Vice-Pres. 
J.  F.  CALLBREATH,  JR.,  Secretary. 

DIRECTORS. 

JOHN  DERN,  Salt  Lake  City,  Utah.  E.  R.  BUCKLEY,  Chicago,  111. 

SAMUEL  A.  TAYLOR,  Pittsburgh,  Pa.  A.  G.  BROWNLEE,  Denver,  Colo. 

D.  W.  BRUNTON,  Denver,  Colo.  CHARLES  A.  BARLOW,  Bakersfleld.Cal. 

E.  A.  MONTGOMERY,  Los  Angeles,  Cal.  JAMES  DOUGLAS,  New  York  City. 
GEORGE  WINGFIELD,  Reno,  Nev.  CARL  SCHOLZ,  Chicago,  111. 

L.  W.  POWELL,  Warren,  Ariz.  HARRY  N.  TAYLOR,  Chicago,  111. 

JOHN  MAYER,  Kansas  City,  Mo. 

EXECUTIVE   COMMITTEE. 

D.  W.  BRUNTON,  Denver,  Colo.  JOHN  DERN,  Salt  Lak«  City,  Utah. 

A.  G.  BROWNLEE,  Denver,  Colo. 


OFFICIAL  ROSTER,  1913 


OFFICERS. 

President— DAVID  W.  BRUNTON,  Denver,  Colo. 
First  Vice  President— HENNON  JENNINGS,  Washington,  D.  C. 
Second  Vice   President— E.  A.   MONTGOMERY,   Los  Angeles,   Gal. 
Third  Vice  President— CARL  SCHOLZ,  Chicago,  111. 
Secretary— J.  F.  CALLBREATH,  Denver,  Colo. 

DIRECTORS. 

SAMUEL  A.  TAYLOR,  Pittsburgh,  Pa.  CARL   SCHOLZ,   Chicago,   111. 

D.  W.  BRUNTON,  Denver,  Colo.  HARRY  N.    TAYLOR,    Chicago,    111. 
HENNON   JENNINGS,    Washington.  JOHN  MAYER,  Kansas  City,  Mo. 

E.  A.    MONTGOMERY.    Los    Angeles.  W.    C.    CONRAD,    Helena,    Mont. 
CHARLES  A.    BARLOW,    Bakersfield.  GEORGE  H.  DERN,  Salt  Lake  City. 
JAME'S    DOUGLAS,    New    York    City.  HARRY  L.  DAY,  Wallace,  Idaho. 

W.  B.  SHACKELFORD,  Joplin,  Mo. 

STATE  VICE-PRESIDENTS. 

Alabama— L.   B.   MUSGROVE,  Oklahoma— DR.   C.    N.  GOULD, 

Birmingham.  Norman. 

Alaska— COL.   B.   F.   MILLARD,  Oregon— JUDGE  T.    C.   BURKE, 

Valdez.  Baker  City. 

Arizona— JUDGE  R.  E.  SLOAN,  South  Carolina— H.  L.   SCAIFE. 

Pheonix.  Clinton. 

Arkansas— A.  W.  ESTES,  Little  Rock.  South  Dakota— T.  J.  GRIER. 

California— H.  F.  BAIN,  Tennessee— CHARLES  H.   SMITH, 

San  Francisco.  Chattanooga. 

Canada— H.  H.  LANG,  Cobalt,  Ont.  Utah— D.  MACVICHIE, 

Colorado— A.  L.  WILFLEY,  Denver.  Salt  Lake  City. 

Georgia— E.   L.  Martin,  Macon.  Virginia— VAN  NESS  HEERMANCE, 

Idaho— H.   F.    SAMUELS,   Wallace.  Rocky   Mount. 

Illinois— E.  T.  BENT,  Chicago.  Washington— G.  B.  DENNIS, 

Kansas— DR.   ERASMUS  HAWORTH,  Spokane. 

Lawrence.  West  Virginia— DR.  I.  C.  WHITE, 

Montana— EDWARD   HORSKY,  Morgantown. 

Helena.  Wisconsin— GEORGE  L.  JARRETT, 

Missouri— COL.  H.  H.  GREGG,  Joplin.  Platteville. 

New  Mexico— C.  T.  BROWN,  Socorro.  Wyoming— JUDGE  M.  N.  GRANT, 
New  York— J.  R.  BURTON,  New  York.     Laramie. 

COMMITTEES  1913. 

EXECUTIVE. 

D.  W.  BRUNTON.  H.   N.   TAYLOR.  CARL  SCHOLZ. 

GENERAL   REVISION   OF   MINERAL   LAND   LAWS. 

Alaska— L.  V.   RAY.    .  Nevada— D.  C.  McDONALD. 

Arizona— WILL    L.    CLARK.  New  Mexico — J.  J.  MURRAY. 

California— J.    ROSS    CLARK.  Oregon— THOMAS  C.   BURKE. 

Colorado — BULKELY  WELLS.  Oklahoma— DR.   C.   N.   GOULD. 

Idaho— E.    M.   HEIGHO.  South  Dakota— I.  A.   WEBB. 

Montana— CORNELIUS  KELLY.  Utah— F.   J.  HAGENBARTH. 

Missouri— E.  B.  KIRBY.  Washington— MATT  BAUMGARTNER. 
Minnesota— HORACE  V.  WINCHELL. 

FEDERAL    LEGISLATION. 
Metal    Mining   Affairs. 

JESSE    KNIGHT,    Provo,    Utah,    Chairman. 

C.   E.  LOOSE,   Provo,  Utah.  L.   K.   ARMSTRONG,   Spokane,  Wash. 

COL.  J.  A.  EDE,  La  Salle,  111.  JOHN  GILLE,  Butte,  Mont. 

Alaskan  Affairs. 

FALCON  JOSLIN,  Fairbanks,  Alaska,  Chairman. 

J.  L.   STEELE,  Landlock,  Alaska.  D.   M.    STEWART,   Seward,   Alaska. 

T.  P.  McDONALD,  Seattle,  Wash.  H.   R.  HARRIMAN,   Seattle,  Wash. 

Coal    Mining   Affairs. 

WALTER    M.    BOGLE,    Fisher    Bldg.,     CHARLES  M.   MODERWELL,   Chicago, 
Chicago,   ill..    Chairman.  111.,   Treasurer. 

E.  R.  SWEENEY,  Kansas  City,  Mo.         THOMAS  W.  DAVIS,  Saginaw,  Mich. 


OFFICERS  AND   COMMITTEES,   1913 


Prevention   of   Mine  Accidents. 

W.   R.  INGALLS,   New  York,   N.   Y.,   Chairman. 

DR    JAMES  DOUGLAS,   New  York.          J.    R.   FINLAY,   New  York. 
J.   P.   CHANNING,   New  York.  JOHN  HAYS   HAMMOND,    New   York. 

Workmen's    Compensation. 

JOHN  H.   JONES,  Pittsburgh,  Pa.,  Chairman. 

DAVID    ROSS,    Springfield,    111.  W.  R.  WOODFORD,  Cleveland,  Ohio. 

J.  W.  DAWSON,  Charleston,  W.  Va.       THOS.  L.  LEWIS,  Bridgeport,  O. 

STANDARDIZATION    OF     ELECTRICAL     EQUIPMENT. 
In    Coal     [Vines. 

GEORGE   R.   WOOD,    Philadelphia,   Pa.,   Chairman. 
SAMUEL    A.    TAYLOR,     Pittsburgh,       H.  M.  WARREN,   Scranton,  Pa. 

J.  R.'  BENT,  Oglesby,  111.  G.   A.    SCHREIER,  Divernon,  111. 

G.  T.  WATSON,  Fairmount,  W.  Va.         W.  A.  THOMAS',  Pittsburgh,   Pa. 

Metal    Mines. 

H.    S.   SANDS,   Denver,    Colo.,   Chairman. 
FRANK  E.   SHEPARD,  Denver,   Colo.     C.  A.   CHASE,   Denver,   Colo. 

Mineral    Statistics. 

GEORGE  W.   RITER,   Salt  Lake  City,  Utah,   Chairman. 

OTTO  RUHL,   Joplin,   Mo.  FREDERICK   BURBIDGE,    Spokane, 

Wash. 

Forestry    Relations. 

HENRY  I.   SEEMAN,   Denver,   Colo.,   Chairman. 

E.  A.  COLBURN,  Denver,   Colo.  ROBERT  L.  MARTIN,  Denver,   Colo. 

(Committee  of  three  in  each  state  to  be  appointed.) 

Bureau   of    Mines. 

SEELEY  W.  MUDD,  Los  Angeles,  Cal.     HAROLD  N.  LAWRIE,  Portland,  Ore. 
M.  J.  FALKENBURG,  Seattle,  Wash.       A.  H.  HARRISON,  Silverton,   Colo. 
E.    P.    SPAULDING,    Spokane,    Wash. 

U.   S.    Geological    Survey. 

DR.   H.    FOSTER   BAIN.    San  Francisco,    Cal.,    Chairman. 

DR.  R.  D.  GEORGE,  Boulder,  Colo.  J.  W.  MALCOLMSON,  Kansas  City,  Mo. 

R.   C.    GEMMELL,    Salt   Lake   City,   Utah. 

Ore    Treatment    Charges. 

E.  M.   DE   LA  VERGNE,   Colorado  Springs,   Colo.,    Chairman. 
BULKELEY  WELLS,  Telluride,   Colo.     W.    MONT    FERRY,    Salt    Lake    City, 
S.  E.   BRETHERTON,   San  Francisco,         Utah. 
Cal.  HENRY  P.  LOWE,  Central  City,  Colo, 

Transportation. 

HARRY  JOSEPH,  Salt  Lake  City,   Utah,  Chairman. 
IMER   PETT,    Salt   Lake    City,    Utah. 


Mining    Investments. 

W.   R.   ALLEN,   Butte,   Mont.,    Chairman. 

WM.   SCALLON,   Helena,   Mont.  LYMAN  A.  SISLEY,  Chicago,  111. 

R.  F.  COLLINS,  Spokane,  Wash.  EDWIN  O.  HOLTER,  New  York  City. 

Organization  Committee. 


A'aska— J.  L.  STEELE. 
Arizona— GEO.   U.   YOUNG. 
British  Columbia— H.  B.  BROWN. 
California— GRANT  H.   TOD. 
Colorado— ALLAN  BURRIS. 
Idaho— H.  F.    SAMUELS. 
Illinois— DAVID   ROSS. 
Kentucky— HYWEL  DA  VIES. 
Mexico— L.  R.  BUDROW. 
Michigan— JAS.    B.   COOPER. 
Minnesota— W.  J.  OLCOTT. 
Missouri— JOHN  M.   MALANG. 
Montana — W.  R.  ALLEN. 
Ohio— C.    S.    JOHNSON. 


Oregon— H.    N.    LAWRIE. 
Ontario— R.   W.   BROCK. 
New  Mexico— T.  H.  O'BRIEN. 
New  York — D.   M.   RIORDAN. 
Nevada— JULES   LABARTHE. 
Oklahoma— J.   P.   McNAUGHTON. 
Oregon— H.   M.    PARKS. 
South  Dakota— R.   L.   DAUGHERTY. 
Texas— S.    J.    BROMAN. 
Utah— JOS.  F.  MERRILL. 
Kentucky— HYWEL  DAVIES. 
Virginia— E.  A.  SCHUBERT,  Roanoke. 
Washington— MAURICE  D.  LEEHEY. 
Wisconsin— GEO.    L.    JARRETT. 


REPORT  OF  THE  PROCEEDINGS 

OF    THE 

Fifteenth  Annual  Session  of  the  American 
Mining  Congress. 


Spokane,  Washington,  November  25-29,  1912. 


MONDAY,  NOVEMBER  25,  1912. 

Opening  Session. 
2:00  O'Clock  P.  M. 

The  Fifteenth  Annual  Session  of  the  American  Mining  Congress, 
held  at  Spokane,  Washington,  November  25-29,  1912,  was  called  to  order 
by  Mr.  Graham  B.  Dennis,  Chairman  of  the  Local  Committee,  Tem- 
porary Chairman  of  the  Convention,  at  2  o'clock. 

THE  CHAIRMAN:  I  want  to  thank  the  ladies  and  gentlemen  for 
their  reception  of  the  delegates  expressed  by  your  presence  today. 

I  wish  to  introduce  the  Very  Reverend  Charles  Hicks,  Dean  of  All 
Saints  Cathedral,  who  will  offer  the  invocation. 

VERY  REVEREND  CHARLES  HICKS:  Let  us  pray.  Almighty 
God,  Maker  of  Heaven  and  Earth,  we  thank  Thee  as  the  source  of  all 
good  things,  the  Giver  of  every  good  and  perfect  gift;  the  Heavens  are 
Thine  and  the  Earth,  and  all  that  therein  is.  Thy  hands  fashioned  the 
hills,  and  the  gold  and  the  silver  and  the  precious  things  of  the  earth 
all  are  Thine;  and  Thou  didst  make  them  and  in  Thy  wisdom  and  power 
were  they  created.  Accept  our  recognition  of  Thy  sovereignty;  our 
grateful  acknowledgment  of  all  Thy  mercies,  and  that  Thou  hast  given  to 
us  more  than  is  given  to  others.  Help  us,  we  beseech  Thee,  to  render 
more  to  others  in  the  way  of  Christian  service.  Give  us,  we  pray  Thee, 
at  this  time  not  only  a  sense  of  Thy  goodness  but  also  a  sense  of  our  re- 
sponsibility and  stewardship,  and  may  such  a  consciousness  of  our  voca- 
tion come  to  us  that  mankind  everywhere  may  be  helped  and  blessed 
through  our  life  and  activities.  Give  us  also  in  all  our  work  and  en- 
deavors an  appreciation  of  the  things  of  the  spirit,  and  may  we  never 
lose  sight  of  spiritual  values  or  the  one  eternal  reality,  possessing  which 
all  other  things  are  added  unto  us. 

To  this  end,  bless  this  convention  here  assembled;  may  all  its  de- 
liberations and  consultations  be  to  Thy  glory  and  the  prosperity,  honor 
and  welfare  of  the  people.  Save  us  from  all  error,  ignorance,  pride  and 
prejudice,  and  of  Thy  great  mercy  vouchsafe,  we  beseech  Thee,  so  to 
direct  and  sanctify  our  actions  in  all  our  doings  that  peace,  happiness, 
truth,  justice,  harmony  and  righteousness  may  be  established  among  us 
for  all  generations.  Hear  us  in  these  our  petitions  and  unto  Thee  shall 
be  the  praise  and  the  glory  both  now  and  forever.  Amen. 

THE  CHAIRMAN.  Members  of  the  American  Mining  Congress, 
Ladies  and  Gentlemen:  The  Governor  of  the  State  of  Washington,  who 
I  regret  cannot  be  with  us,  but  his  representative  on  behalf  of  the  people 
of  the  State,  the  Mayor  of  Spokane  on  behalf  of  the  residents  of  this 


10  OFFICIAL    PROCEEDINGS 

city,  and  the  President  of  the  Chamber  of  Commerce  will  each  in  turn 
extend  to  you  a  cordial  welcome. 

It  falls  to  me  as  President  of  the  Spokane  Chapter  of  the  Congress 
to  have  the  honor  of  making  the  opening  address,  and  to  extend  a  wel- 
come on  behalf  of  the  miners  of  the  Northwest,  and  to  express  our  deep 
appreciation  of  this  great  honor  and  privilege  bestowed  upon  our  city 
by  the  gathering  of  the  members  of  the  American  Mining  Congress. 

We  acknowledge  no  superior  calling  than  ours  in  all  the  great 
activities  that  go  to  make  up  a  life  of  endeavor;  and  while  we  reverence 
and  respect  each  and  every  factor  ordained  to  human  progress,  we  justly 
accord  to  ourselves  that  it  is  the  miner  only  who  reveals  to  mankind  the 
buried  elements  of  creation,  and  turns  them  to  the  uses  and  account 
of  man. 

Associated,  as  the  profession  is  with  the  great  and  creative  sciences, 
and  thus  a  power,  it  has  been  the  means  of  not  only  amalgamating  par- 
ticles of  the  creation  of  Providence  into  a  magnificent  whole,  but  has 
brought  them  under  subjection  and  control,  enlarging  the  intelligence, 
the  civilization  and  the  enlightenment  of  the  world. 

The  symbol  of  associative  strength  and  advancement,  proven  by 
actual  experience  as  well  as  scientific  demonstration,  finds  its  counter- 
part in  the  mathematical  three  and  the  triangle. 

Having  attained  the  fifteenth  year,  or  three  times  five  years,  of 
our  associate  existence,  I  am  impressed  with  the  assurance  of  strength 
which  those  years  vouchsafe,  and  building  upon  that  triangled  founda- 
tion, we  may  surely  look  forward  with  confidence  to  the  permanency  of 
the  Association  and  to  the  ultimate  attainment  of  that  larger  usefulness 
and  completeness,  the  hope  of  which  was  the  inspiration  of  its  birth. 
Though  neither  philosphy  may  propound  nor  science  may  explain,  yet 
the  significance  of  the  numeral  three  and  the  triangle  have  from  the 
shadows  of  mythology  down  the  long  corridors  of  history  to  the  present 
day — in  science,  in  mechanics,  in  Holy  Writ,  in  poetry,  in  rhetoric,  in 
the  multifarious  affairs  of  men — always  borne  a  peculiar  and  strange 
significance.  The  triangle  in  mathematics  and  its  applied  branches — 
mechanic,  architecture  and  mensuration;  the  three  basal  elements  of 
physics,  the  common  habit  of  thinking  in  periods  of  three,  and  finally, 
the  strength  of  the  God-head  represented  in  Trinity. 

The  Association  has  completed  the  fifteen  years  of  its  existence. 
It  has  described  the  three  sides  of  a  triangle,  which  denotes  the  strength 
of  its  associate  life. 

Paramount  to  all  achievements,  the  Association  has  gained  in 
stability  and  strength,  being  founded  upon  a  rock  as  permanent  as 
that  of  Gibraltar.  Its  strength  is  its  purpose;  its  stability  the  character 
of  its  organization.  Its  mission  is  to  bring  into  closer  relationship 
those  of  the  craft,  and  will  not  only  cement  the  Union  but  inculcate 
the  spirit  of  brotherly  co-operation,  so  as  to  be  a  lasting  benefit  to  each 
other.  Its  inspiration  is  the  "Golden  Rule,"  and  neither  doubt  nor  fear 
can  wreck  it  upon  the  shoals  of  time.  Born  in  the  purple,  the  folds  of 
its  garment  have  graciously  surrounded  it;  nourished  by  the  hand  of 
Providence,  accentuated  by  the  elements  of  determination,  it  has  devel- 
oped into  a  strong  factor  for  usefulness,  applicable  alike  to  individual  and 
universal  influence. 

Its  influence  is  upon  the  present  and  passing  generation,  and  in 
accord  with  the  accomplishment  of  its  aims,  humanity  alone  shall  be 
its  judge. 

It  is  my  great  privilege  today  to  speak  on  behalf  of  the  Miners  of 
the  Northwest — to  champion  their  cause  for  sturdiness,  energy,  intelli- 
gence and  hospitality — and  to  say  to  you  that  theirs  are  great  hearts, 
and  that  in  this  great  mountain  country,  a  country  filled  with  diversified 
and  commercial  minerals,  the  latch-string  of  every  cabin  hangs  outside 
the  door  bidding  you  entrance. 

If  you  should  find  anything  lacking  that  might  have  contributed 
to  your  comfort  or  pleasure  while  in  this  city,  it  is  not,  I  can  assure 


AMERICAN    MINING    CONGRESS  11 

you,  because  our  hearts  were  too  sluggish  or  our  hands  too  indolent 
to  provide  it. 

Many  of  the  brilliant  gentlemen  who  will  address  you  during  this 
convention  have  been  blessed  with  the  "gift  of  tongues."  With  thunder- 
ing words  of  eloquence  rolling  upon  your  ears  like  the  majestic  music 
of  the  spheres,  they  will  arouse  you  to  heroic  purpose  and  resolve,  or 
perchance,  by  mellow  cadence  as  of  the  flute  and  the  lyre,  move  your 
hearts  to  gentleness  and  your  eyes  to  tears. 

But  to  me,  my  friends,  has  been  given  only  the  humble  endowment 
of  hard  labor,  the  gift  to  work  with  a  pick  and  shovel  beside  my  brother 
miners  along  the  unblazed  trail  of  everyday  affairs.  Therefore,  much 
as  I  would  like  to  entertain  you  with  an  epic  of  the  heroism  and  achieve- 
ments of  the  Miners  of  the  great  West,  I  must  leave  song  and  verse 
to  others. 

And  yet  on  such  an  occasion  as  this,  I  cannot  pass  over  the  subject 
altogether  without  stopping,  for  a  moment  at  least,  to  pay  tribute  to 
the  brave,  dauntless,  big-hearted  pioneer  miner  and  prospector  of  this 
great  western  country,  whose  beneficiaries  we  all  are  as  we  sit  here 
today  gathered  together  in  this  great  meeting. 

Even  that  sublime  song-writer,  Job,  found  the  dauntless  courage 
of  the  miner  of  that  long-ago  day  the  fit  subject  for  one  of  his  rarest 
didactic  poems  of  surpassing  sublimity. 

I  am  indebted  to  Dr.  R.  W.  Raymond,  of  the  American  Institute 
of  Mining  Engineers,  for  the  following  original  translation  and  para- 
phrasing of  this  wonderful  lyric. 

"Silver  and  gold 

Needing  to  be  refined, 
Iron  and  brass  ores 

Are  won   underground, 

The  miner  presses  to  the  very  boundary  of  the  darkness, 
And    searches   to   that   limit,   the   rocks 

As  dark  as  death. 
Down  and  away  from  human  abodes 

He  sinks  his  shaft, 
In  which,  forgotten  by  the  feet 
That  pass  overhead, 
He  swings  suspended. 
Above  him  the  earth  produces  food, 
But  underground,  plowed  by  fire, 
It  has  gems  for  grain  and  gold  for 

Clods  in  the  soil. 
His  trail  is  invisible,  even  to  the  keen-eyed 

Birds  of  prey, 
Nor  has  it  ever  been  traveled  by  prowling 

Beasts- 
Even  the  bold  lion  who  goes  fearlessly 

Everywhere. 

Again  he  attacks  the  hard  rocks, 
Overturning  even  the  mountains  by  the  roots, 
And  cutting  new  channel, 

Lays  bare  the  river  beds, 
In  which  his  eye  discovers 

Every  precious  particle. 
He  prevents   streams  from  leaking 

And  brings  forth  the  hidden  treasure." 

My  friends,  when  I  consider  what  this  great  audience  I  see  before 
me  represents  in  the  industrial  life  of  the  Nation  and  of  the  world;  and 
when  I  consider  that  the  men  and  women  seated  here  have  come  from 
every  part  of  this  great  country  of  ours  as  well  as  from  many  foreign 
shores,  and  that  many  of  you  answer  to  names  that  the  winds  of  fame 
have  carried  to  the  four  corners  of  the  earth,  because  of  your  great 


12  OFFICIAL    PROCEEDINGS 

achievements  in  the  scientific,  industrial  and  financial  world;  and  when 
I  contemplate  the  program  prepared  for  this  mining  Congress  and 
realize  the  many  profound  subjects  of  large  and  national  importance  that 
are  to  be  discussed  and  determined  in  this  Convention,  I  am  impressed 
with  the  conspicuous  fact  that  the  day  of  the  "Pack  Mule  Overland 
Flier"  and  the  heroic  life  of  the  frontier  mining  town  is  rapidly  passing. 

While  every  true  progressive  must  welcome  the  dawn  of  the  larger 
day,  and  buckling  on  his  armor,  go  forth  to  meet  the  rising  sun,  never- 
theless it  is  wholesome  now  and  then  to  turn  our  thoughts  backward  lest 
in  the  pride  and  conceit  of  achievement  we  should  forget  the  hand  that 
rocked  the  cradle  of  our  birth. 

Indeed,  to  no  other  industry  does  this  nursery  simile  so  well  apply, 
and  not  by  metaphor  alone,  but  literally;  in  fact,  the  infant  mining 
industry  was  rocked  in  a  cradle. 

First  by  the  horn,  then  the  cradle,  then  the  arrastra,  then  the  stamp 
mill,  the  smelter,  the  cyanide  tank  and  the  electric  furnace  have  the 
precious  metals  that  form  the  monetary  systems  of  the  world  been  win- 
nowed from  the  secret  hiding-places  in  the  earth. 

We  congratulate  ourselves  that  the  twentieth  century  has  discov- 
ered the  law  of  miracles,  and  with  just  pride  we  boast  of  our  scientic 
achievements. 

We  have  seen  the  arrastra  supplanted  by  the  800-stamp  mills  of 
Homestake  and  Treadwell;  we  have  seen  the  old  pack-trail  of  the 
mountains  obliterated  by  the  steel-ribbed  roadbed,  and  have  heard  the 
bray  of  the  pack-mule  drowned  by  the  shrill  whistle  of  the  giant  Mallet 
locomotive  with  its  burden  of  a  hundred  cars,  each  laden  with  a  hundred 
thousand  pounds  of  our  precious  ores,  screeching  and  dashing  with  the 
fury  of  a  demon  from  continental  shore  to  shore. 

As  one  looking  down  from  a  planet,  we  have  stood  on  Alta  Butte 
at  Anaconda  and  gazed  in  wonderment  at  that  marvelous  panorama  of 
Washoe  Smelter,  self-contained  world  of  human  activities.  In  the  silent 
night  we  have  listened  to  the  deep-toned  thunder  of  those  giant  crushers 
and  monster  rolls,  whose  cruel  jaws  and  relentless  molars  mercilessly 
flay  and  crush  and  forever  grind  to  finest  powder  the  hitherto  unre- 
sisting rocks — battle  royal  between  the  great  forces  of  nature,  in  which 
the  contending  water,  gathered  and  harnessed  for  war,  and  using  man- 
made  weapons,  is  engaged  in  deadly  conflict  with  the  adamantine  walls 
of  earth's  great  treasure  vaults. 

Dumbstricken  with  wonder  and  admiration,  we  have  stood  watch- 
ing that  marvelous  scene  of  the  terraced  floor  of  this  great  smelter,  over 
which  a  great  stream  of  crystal  water,  released  from  the  raging  battle 
with  the  rocks  below,  and  under  the  glare  of  a  thousand  incandescent 
lamps,  flashing  like  ten  thousand  bayonets  in  the  sun,  comes  dashing, 
foaming,  rushing  down,  down,  down  that  imposing  terraced  declivity 
of  700  feet,  reckless  of  its  steps  and  mad  with  the  joy  of  freedom. 

We  have  gone  down  to  the  furnace  floor  and  watched  the  steady 
flow  of  the  incandescent  molten  metal  as  it  pours  from  a  thousand  di£- 
charges  of  the  great  furnaces,  like  putrid  fires  of  hell  vomiting  from  a 
thousand  serpentine  throats,  but  quickly  to  be  chilled  by  contact  with 
the  cold  world  into  ingots  of  precious  metal  and  sent  out  by  train-loads 
into  the  markets  of  the  world  to  sway  the  commerce  of  empires. 

But  we  have  not  yet  seen  all  of  this  great  twentieth  _century 
monument  of  the  mining  industry.  Let  us  step  outside  again,  and 
craning  our  necks  backward,  look  up  into  the  heavens.  There  tapering 
up,  up,  up,  seeming  to  pierce  the  very  nebulae  of  the  stars,  rises  the 
greatest  smokestack  in  the  world. 

Can  it  be  possible  that  human  conception  dares  thus  to  scale  the 
clouds  and  human  hands  to  lay  brick  and  mortar  at  the  very  threshold 
of  the  heavens?  Think  of  the  craftsman  who  climbed  to  that  dizzy 
height,  soaring  by  the  pier  he  builded  beneath  his  own  feet,  with  only 
the  stars  for  hand-holds. 

See  that  great  volume  of  white  vapor,  like  incense  burning  from 
a  lofty  altar  of  the  gods,  rising  higher  and  higher,  and  now,  as  though 


AMERICAN    MINING    CONGRESS  13 

it  had  impinged  the  wall  of  the  infinite  dome,  gently  breaking  and 
spreading  into  a  filmy  nimbus  of  infinite  sinuosity  and  grace. 

And  when  standing  upon  and  contemplating  the  superb  and  dizzy 
heights  of  the  grand  and  majestic  Coeur  d'Alenes,  those  mighty  piles 
of  metallic  creation,  and  below  their  canyons,  their  great  mines,  tunnels, 
ore  dumps,  mills  and  camps,  the  soul  fills  with  the  graciousness  of  a 
great  and  kind  Providence  which  made  it  possible,  and  a  Harry  L.  Day, 
a  Eugene  Day,  an  August  Paulson,  a  James  F.  McCarthy,  a  Stanley  A. 
Easton,  a  Bradley,  a  Patrick  Clark,  a  John  A.  Finch,  a  Culbertson,  a 
Hammond,  a  Sweeny,  and  a  lamented  Greenough  and  Wardner,  men 
that  other  ages  have  equalled  but  not  surpassed,  men  of  energy,  perse- 
verance, intrepidity  and  intelligence,  who  out  of  the  very  intrepidity  of 
their  souls  hewed  the  trail,  drove  the  pick,  dared  to  do,  surrendered  the 
comfort  of  home  and  home  ties,  that  state  and  nation  might  profit,  and 
future  generations  reap  the  joy.  Such  men,  Gentlemen  of  this  Convention, 
are  of  the  salt  of  the  earth,  whom  a  monument  built  of  gold  would 
illy  honor,  but  whose  real  honor  lies  and  rests  in  the  memory  and  the 
hearts  of  men. 

As  stated  in  my  foregoing  remarks,  we  are  assembled  for  the  first 
time  in  the  city  of  Spokane,  and  for  the  fifteenth  in  the  life  and  history 
of  the  American  Mining  Congress,  to  carry  forward  the  wise  and  admir- 
able purposes  of  this  association,  and  join  hands  in  the  effective  service 
of  one  of  the  great  branches  of  human  industry. 

The  object  of  all  industry  is  to  achieve  and  advance  the  well  being 
of  humanity,  to  win  by  expenditure  of  intelligence,  muscle  and  mechan- 
ical appliance,  livelihood  for  the  passing  generations,  and  the  crown  of 
honor  and  fame  for  those  who  add  to  that  knowledge,  which  is  the  underr 
standing  of  the  productions  of  Nature,  and  how  to  turn  them  to  men's 
good. 

Curiosity  as  to  these  myriad  productions  of  Nature  is  an  instinct 
as  old  as  the  Garden  of  Eden,  and  the  pages  of  Holy  Writ  reveal  to 
us  how  the  rebellious  use  of  primeval  curiosity,  that  resistless  passion 
to  gather  the  fruit  of  knowledge — to  taste  its  tempting  substance,  and 
drain  one  draught  of  its  fascinating  juice,  was  punished  by  expulsion 
from  that  garden  of  joys,  and  the  condemnation  of  man  to  gain  his 
bread  by  the  sweat  of  his  brow. 

Be  that  legend  the  literal  and  inspired  record  of  man's  first  en- 
trance into  the  career  of  industry,  or  be  it  a  splendid  poetic  fable,  it  is 
surely  the  eternal  truth. 

By  our  own  industry  we  have  lived  these  thousands  of  ye»»-s — 
by  our  own  industry  we  have  risen  from  primitive  ignorance  and  savage 
rudeness  of  life,  until  upon  industry  rests  the  solid  and  enduring  fabric 
of  our  ever  progressing  civilization,  and  if  curiosity,  which  is  the  spirit 
of  investigation,  drove  us  out  of  paradise,  slowly  under  that  modern 
form  of  curiosity  we  call  science,  man  is  surely  shaping  the  march  of 
progress  toward  a  new  paradise  of  intelligence,  of  comfort,  of  beauty 
and  of  charm.  Thither  we  and  our  industries  are  tending. 

Those  colossal  monsters  of  human  construction,  the  kingdoms  of 
the  world,  arise,  flourish,  decay  and  are  cast  into  the  dust-heap  of  the 
ages,  but  the  highest  achievement  of  labor,  the  science  and  arts  of  human 
industry,  are  handed  on  over  the  graves  of  empires,  from  century  to 
century,  from  land  to  land,  from  race  to  race,  ever  magnificent,  ever 
beneficent. 

We  who  are  assembled  here  belong  to  that  army  of  workers  who, 
undaunted  by  the  solid  adamant  of  the  everlasting  hills,  delve  our  way 
into  the  dark  and  rayless  regions  of  the  earth's  stout  crust,  and  win 
the  useful  minerals. 

What  we  call  the  science  of  mining  came  down  to  us  from  hoary 
antiquity,  and  has  grown,  like  all  other  of  the  human  arts,  from  the 
rudest  beginnings  in  the  early  infancy  of  our  race,  ages  and  ages  before 
the  sun  of  history  rose  above  the  horizon  of  recorded  time. 

Onward,  onward  and  ever  onward,  marches  the  industry  of  mining, 
one  by  one  we  have  cast  away  the  rude  appliances  and  methods  of  the 


14  OFFICIAL    PROCEEDINGS 

past;  one  by  one  we  have  seized  the  new  weapons  of  modern  practice, 
and  organized  them  into  a  harmonious  whole,  till  the  miner  who  began 
in  ages  past  by  fashioning  a  hammer  out  of  a  river  pebble,  and  wearing 
a  chisel  out  of  a  wayside  stone,  and  clipping  the  glittering  specks  from 
some  chance  outcrop,  has  become  the  broad-minded  scientist  versed  in 
minerals  and  the  world's  structure,  a  possessor  of  the  secrets  of  chem- 
istry, a  wielder  of  mechanical  power,  a  harnesser  of  lightning. 

Many  before  me  have  reached  this  last  stage  of  development  as 
full  masters  of  the  great  art  of  mining,  and  have  contributed  their 
eminent  part  of  the  wonderful  progress  which  is  one  of  the  glories  of 
the  early  years  of  the  new  century. 

Can  we  doubt  that  this  Association,  so  richly  endowed  with  pro- 
fessional knowledge,  will  put  its  great  shoulder  to  the  wheel,  and  still 
urge  the  onward  march? 

From  many  snow-enamelled  and  cloud-capped  mountain  crests — 
from  the  pine-shadowed  shoulders  of  remote  and  far-separated  ranges, 
a  thousand  rills  of  water  follow  their  devious  pathways  downward 
through  forest  and  canyon,  by  valley  and  meadow  and  village,  ever 
growing,  ever  uniting,  till  at  last  all  these  trivial  water  courses  and 
modest  brooks  become  the  broad  stream,  over  each  rock  in  the  rapids 
of  which  there  hangs  a  bridal  veil,  and  over  each  cataract  a  shroud  that 
rolls  on  through  the  plain  of  Spokane.  Rain  drops  and  snow  crystals 
have  become  the  one  proud  river,  and  here  in  the  midst  of  this  splendid 
young  city,  suddenly  by  a  single  leap  it  develops  a  large  and  splendid 
measure  of  energy  useful  for  the  industrial  needs  of  man  now  and 
hereafter  so  long  as  this  rock-ribbed  continent  shall  stand  above  the 
waters  of  the  encircling  sea.  Such  is  the  mighty  result  of  combination; 
so  may  it  be  with  our  confluence  here. 

Like  the  drops  of  wind-scattered  rain,  like  wandering  snow  crystals 
tossed  by  prodigal  clouds  from  some  far-off  crag,  we  start  from  a  hun- 
dred sources,  and,  gathered  in  the  channels  of  our  several  industries, 
and  urged  by  the  gravitation  of  our  mutual  interests,  you  enter  the  gates 
of  Spokane,  which  are  ever  wide  and  hospitably  opened  to  the  influx  of 
mining  manhood. 

With  us,  gentlemeon  of  this  Association,  it  remains  to  complete 
the  parallel  I  have  drawn.  It  is  for  us  to  follow  the  poetic  parallel  of 
that  fair  river  and  here  in  Spokane,  nurtured  and  sustained  by  this  great 
Association,  to  convert  the  flow  of  our  lives  into  one  great  and  enduring 
mining  power. 

As  man's  mechanical  skill  turns  the  energy  of  the  cataract  into  a 
useful  and  docile  force  which  he  can  transmit  near  and  far  to  serve  a 
hundred  useful  purposes,  so  may  we  here  combine  and  develop  a  great, 
beneficent,  intellectual  energy  which  we  shall  transmit  'to  the  remotest 
confines  of  our  cherished  Northwest,  for  the  lasting  benefit  of  the  men 
and  industry  of  mining. 

But,  my  friends,  let  us  come  back  to  earth.  We  are  no  longer  at 
Anaconda  gasping  in  wonder  and  admiration  at  the  great  Washoe  smel- 
ter, nor  upon  the  silver  and  gold  tipped  crests  of  the  Coeur  d'Alenes, 
nor  wrapped  in  the  splendor  of  the  history  and  personality  of  its  men. 
We  are  here  in  the  city  of  Spokane  at  a  meeting  of  the  members  and 
friends  of  the  American  Mining  Congress,  assembled  for  mutual  encour- 
agement and  interchange  of  ideas,  and  for  the  more  serious  business 
of  discussing  and  determining  many  questions  of  grave  and  vital  impor- 
tance to  the  mining  business  and  to  the  welfare  of  the  nation. 

This  is  a  gathering  of  men  of  a  high  order  of  intelligence  and 
education,  men  who  have  done  big  things  and  who  stand  for  one  of 
the  greatest  factors  of  American  progress  and  prosperity. 

The  Washoe  smelter,  the  Bunker  Hill  and  Sullivan,  the  Hecla,  the 
Standard  and  the  Hercules  mines  of  the  Coeur  d'Alenes,  are  only  some 
of  the  great  achievements  connected  with  the  industry  this  Congress  rep- 
resents. During  this  Convention,  no  doubt,  we  shall  hear  of  many  others 
equally  great  or  greater.  The  men  present  are  those  who  have  accom- 


AMERICAN    MINING    CONGRESS  15 

plished  these  great  things.     We  have  just  cause  for  pride  and  rejoicing 
over  our  achievements. 

But  returning  for  a  moment  to  the  thought  suggested  in  the  early 
part  of  these  remarks.  What  of  the  pioneer  prospector  and  brave  miner 
of  the  early  day  mining  camps  of  the  West,  and  particularly  of  our  own 
dear  and  beloved  mining  country,  those  of  the  Coeur  d'Alenes,  Republic, 
Crow's  Nest  Pass  of  British  Columbia,  Phoenix,  Colville,  Chewelah, 
Boundary,  Slocan  and  Elk  City  camps,  enshrined  and  honored  with  the 
names  of  Jay  P.  Graves,  Byron  N.  White,  D.  C.  Corbin,  Conrad  Wolfe, 
Clark,  Harper,  Kearney  and  others,  the  sun  of  whose  days  is  now  rapidly 
setting,  but  who  blazed  the  trail  into  the  wilderness  over  which  we 
have  traveled  to  our  present  greatness  and  shall  continue  to  travel  to 
greater  things? 

It  is  for  them  I  speak,  lest  in  our  pride  and  self-importance  we 
forget — forget  the  debt  of  gratitude  we  owe. 

My  friends,  it  is  with  this  thought  in  mind,  as  well  as  to  provide 
for  your  pleasure  and  entertainment  that  the  loyal  citizens  of  Spokane, 
the  Chamber  of  Commerce,  the  Mining  Men's  Club,  L.  K.  Armstrong, 
its  able  president;  the  Ad,  Rotary,  Enakops,  Real  Estate  and  other  clubs 
have  prepared  an  exhibit  reproducing  the  familiar  scenes  of  early  life 
in  the  mining  camps  of  the  West.  To  the  "Spokane  Diggins"  you  have 
a  hearty  welcome. 

And  now,  ladies  and  gentlemen,  I  find  that  I  am  not  half  through 
saying  what  I  would  like  to  say,  and  yet  1  have  already  taken  up  more 
of  your  time  than  I  am  entitled  to. 

I  would  like  to  show  you  a  map  of  Washington,  Idaho,  Alaska, 
Oregon,  Montana  and  British  Columbia  and  point  out  to  you  the  loca- 
tions of  the  many  mining  districts  of  this  Northwest  country,  and  the 
railroads  that  traverse  it,  making  Spokane  the  great  commercial  mining 
center  of  this  vast  country.  I  would  like  to  tell  you  something  of  the 
present  activity  in  the  many  camps,  and  the  vast  as  yet  undeveloped 
territory,  so  that  you  might  put  two  and  two  together  and  judge  for 
yourselves  how  great  the  future  development  is  likely  to  be. 

I  would  like  to  review  the  history  of  Spokane  in  order  to  convince 
you  that  this  city,  its  capital,  its  brains,  and  its  labor  has  been,  and  will 
continue  to  be,  the  prime  inspiration  of  the  mining  development  of  this 
entire  Northwest  country,  and  to  persuade  you  that  the  true  mining 
spirit,  with  all  of  its  courage,  large-heartedness  and  zeal,  is  the  quicken- 
ing impulse  and  passion  of  our  people. 

And  then  I  would  like  to  whisper  in  your  ear  the  secret  of  our 
ambition  to  make  the  city  of  Spokane  the  permanent  headquarters  of 
the  American  Mining  Congress,  and  what  we  propose  to  do  for  you,  to 
build  for  you  a  great  Mining  Temple,  if  in  your  wisdom  and  generosity 
you  should  yield  to  our  appeal. 

But  I  realize  that  it  would  be  in  bad  taste  to  thrust  this  subject 
upon  you  so  early  in  the  proceedings,  and  especially  in  these  opening 
remarks  of  welcome.  There  will  be  time  and  place  for  that. 

And  now,  ladies  and  gentlemen,  thanking  you  for  your  kind  atten- 
tion, I  have  the  honor  to  introduce  to  you  our  honored  mayor,  Dr. 
W.  J.  Hindley,  mayor  of  Spokane. 

MAYOR  HINDLEY:  Mr.  Chairman,  Ladies  and  Gentlemen: 
When  I  came  into  the  Armory  this  afternoon  the  good  minister,  the 
Dean  of  All  Saints'  Cathedral  was  leading  you  in  prayer.  I  have  attended 
several  preliminary  meetings  held  in  the  interests  of  this  great  confer- 
ence, this  meeting  of  the  American  Mining  Congress,  but  this  is  the  first 
time  that  I  can  think  of  that  such  a  conference  was  opened  with  a  prayer, 
and  I  didn't  understand  the  why,  because  I  saw  nothing  serious  in  the 
mineral  markets,  why  the  mining  men  should  be  prayed  for,  but  looking 
down  the  program,  beginning  with  this  splendid  address  by  Mr.  Dennis 
and  ending  with  about  fifteen  others,  I  can  easily  understand  why  you 
people  needed  praying  for.  (Laughter.)  When  the  Chairman  referred  to 
the  flows  of  oratory  that  would  fall  upon  your  ears  during  these  confer- 
ence days  and  then  got  busy  with  such  terms  as  "filmy  nimbus," 


16  OFFICIAL    PROCEEDINGS 

"ethereal,"  "sinuosity"  and  others,  I  was  just  wondering  what  was  going 
to  happen  to  the  rest  of  us. 

I  am  reminded  a  little  of  the  son  of  the  farmer  in  the  East  who 
came  West.  They  didn't  hear  from  him  for  a  number  of  months  until 
one  day  they  got  a  telegram  which  said  in  terse  words,  "Your  son  John 
was  killed  this  morning."  Of  course,  the  farmer  was  very  badly  broken 
up  over  the  news,  and  after  they  had  calmed  down  and  talked  it  over 
they  decided  to  have  the  body  sent  home  for  interment.  So  they  tele- 
graphed back  to  the  friend  who  had  originally  telegraphed  them  saying, 
"Your  sad  news  received.  Send  on  the  remains."  And  they  were  a  little 
surprised  to  receive  an  answering  telegram  from  the  friend  saying, 
"There  are  no  remains.  Your  son  John  was  kicked  by  a  mule."  And 
that  is  the  way  I  felt  when  Mr.  Dennis  got  through  with  his  speech. 
I  simply  felt  there  were  no  remains  after  he  had  concluded  his  own 
address  for  the  rest  of  us,  and  yet  the  spirit  and  eloquence  of  that 
address  has  struck  a  high  note  and  those  of  us  who  follow  will  certainly 
have  to  be  up  and  about  our  business  if  we  intend  to  keep  pace  with 
that  address. 

You  remember  the  story  of  the  man  who  was  riding  down  the  trail 
and  happened  to  see  a  drover  with  a  herd  of  cattle.  One  of  them  became 
foot-sore  and  laid  down  on  the  trail.  He  couldn't  get  it  up;  he  kicked 
and  he  cussed  and  he  did  everything  he  could  think  of  to  the  critter, 
but  the  critter  laid  upon  the  trail.  The  traveler,  who  happened  to  be 
a  physician,  took  a  small  bottle  out  of  his  pocket  or  bag  and  dropped 
a  few  drops  on  his  hand  and  then  rubbed  it  upon  the  critter.  He  had 
no  more  than  touched  him  with  this  acid,  or  whatever  it  was  that  was 
in  the  bottle,  when  it  jumped  up  to  its  feet  and  made  over  the  hill,  and 
the  last  they  saw  of  it  was  going  over  the  sky-line  with  its  tail  over 
its  back.  And  the  man  said,  "Stranger,  I  don't  know  what  you  have 
got  in  that  bottle,  but  you  had  better  rub  a  little  on  me  because  I've 
got  to  catch  that  critter  or  lose  my  job." 

Now,  I  don't  know  what  kind  of  a  bottle  Dennis  had  after  dinner, 
but  if  I  am  going  to  keep  up  with  him,  I  know  from  the  burst  of  oratory 
that  came  from  his  lips  that  I  had  better  be  rubbed  with  some  of  that 
bottle,  too,  or  I  will  be  subject  to  the  recall. 

I  welcome  you  here  this  afternoon,  delegates  from  every  state  in 
the  United  States  and  Canada;  I  welcome  you  here  because  of  what  you 
are  and  because  of  the  people  whom  you  represent,  because  of  the  great 
interests  that  are  concerned  in  your  deliberations  and  whose  futures  are 
involved  in  your  conclusions.  Spokane  extends  to  you  a  hearty  welcome 
today,  and  I  trust  that  when  you  leave  our  city  it  will  not  be  with  that 
quotation  of  that  beautiful  parable,  one  of  whose  statements  is  written 
thus,  "I  was  a  stranger  and  ye  took  me  in."  Mining  men,  however,  have 
something  coming  to  them  in  that  line.  I  can  say  to  you  very  frankly, 
however,  that  if  any  of  you  have  been  away  from  the  great  mining 
centers  of  the  West  for  a  number  of  years,  I  have  it  on  good  informa- 
tion that  there  are  still  some  local  properties  that  have  not  been  fully 
marketed  and  you  might  be  waited  upon  in  your  hotels  or  places  of 
assignment  before  your  conference  closes. 

I  welcome  you  here,  gentlemen,  first  because  of  the  history  of  your 
great  industry.  Some  of  us  have  been  informed  Tubal  Cain  was  the  first 
known  instructor  of  every  artificer  in  brass  and  iron;  but  I  claim  a 
greater  antiquity  for  you  in  your  industry  than  that  of  Tubal  Cain.  I 
say  to  you  that  your  industry  was  old  when  Adam  and  Eve  were  expelled 
from  the  Garden  of  Eden,  and  the  Bible  itself  is  the  proof  upon  which 
I  rest  that  statement,  for  you  remember  when  Adam  and  Eve  were  ex- 
pelled from  the  Garden  of  Eden  there  was  an  angel  placed  at  the 
entrance  with  a  flaming  sword,  and  where  could  the  sword  have  come 
from  if  there  had  not  been  minerals  before  that  day?  Your  industry 
is  as  hoary  with  antiquity  as  the  pyramids  of  Egypt  and  goes  back  to  the 
ancient  civilizations  that  lined  the  banks  of  the  Nile  and  the  banks  of 
the  Ganges.  In  fact,  I  think  that  our  ancestry  who  carved  their  places 
of  abode  in  the  hills  and  the  cliffs  deserve  no  small  part  of  our  gratitude, 


AMERICAN    MINING    CONGRESS  17 

and  have  no  small  measure  of  obligation  coming  to  them  from  the  men 
of  the  American  Mining  Congress  of  today.  I  regard  you  men  as  having 
been  identified  with  the  growth  and  evolution  of  the  human  race  through 
the  various  changes  that  our  geologists  outline  in  their  scientific  works, 
showing  how  man  has  started  from  a  very  humble  origin,  and  how  he 
has  mined  and  how  he  has  worked  at  the  various  minerals  and  metals 
and  formed  them  according  to  his  will,  so  that  into  it  he  has  brought 
an  intelligence  and  an  endeavor  that  characterizes  the  Twentieth  Century 
for  its  success,  and  it  is  on  these  things  and  on  this  antiquity  that  I 
make  for  you  no  idle  boast. 

I  welcome  you  to  this  new  city,  a  product  of  the  mining  industry, 
whose  streets  are  lined  with  magnificent  buildings  and  institutions  that 
have  been  made  possible,  many  of  them,  through  the  investment  of  the 
fortunes  that  have  been  dug  from  the  hills  of  the  wonderful  Northwest. 

I  welcome  you,  ladies  and  gentlemen,  because  of  these  things  today. 
Then  I  welcome  you  because  of  the  contribution  you  have  made  to  my 
welfare;  but  not  only  to  my  welfare,  but  to  the  welfare  of  every  other 
man,  when  we  think  of  the  agencies  that  have  lifted  the  burden  from 
men,  lifted  it  from  the  toil-bent  shoulders  of  men  and  laid  them  on  the 
mind,  the  intelligence,  by  which  great  machinery  has  been  called  into 
service  and  these  burdens  transferred  largely  to  the  mechanisms  that 
have  been  evolved  from  the  mechanical  skill  and  art  of  man.  None  of 
these  would  have  been  possible  had  it  not  been  for  the  men  who  delved 
in  the  hills;  men  with  the  vision  and  the  fortitude;  men  with  that  splen- 
did courage  of  their  convictions,  who  have  made  available  the  great 
storehouses  of  nature.  The  steam  engine,  the  steamboat,  the  locomotive 
and  the  aeroplane  and  many  of  these  things  are  due  to  you  and  your 
kind;  due  to  the  contributions  that  you  have  made  for  them  and  for 
their  products.  I  say  to  you  today  that  had  it  not  been  for  the  mining 
industry  the  modern  city  would  have  been  an  impossibility;  mankind 
would  still  have  been  living  in  his  tepee;  man  would  have  been  sustain- 
ing his  body  with  the  berries  and  nuts,  feeding  himself  with  the  natural 
products  that  could  be  gathered  with  his  fingers  from  the  bush  and 
taken  from  the  stream;  that  he  would  still  have  been  a  savage  and  a 
barbarian.  But  you  have  lifted  him  by  means  of  the  opportunities  you 
have  provided  for  him  to  that  stage  in  his  evolution  in  which  the 
psalmist  of  the  twentieth  century  would  find  that  even  man,  who  was 
made  in  the  image  of  God,  is  not  a  little  lower  than  the  angels,  but  in 
the  achievements  and  purposes  of  his  life  has  had  things  given  to  him 
that  the  angels  themselves  might  well  envy. 

I  welcome  you,  therefore,  ladies  and  gentlemen,  today  because  of 
your  contribution,  and  in  the  last  place,  I  welcome  you  because  of  the 
splendid  democracy  of  your  organization.  There  are  men  here  repre- 
senting the  extremes  of  mining  activity,  and  in  this  organization  you 
are  here,  some  of  you  representing  the  coal  mines  and  some  the  copper 
mines  and  some  the  silver  mines  and  some  perhaps  the  sulphur  mines — 
we  don't  know  whose  those  are,  because  the  sulphur  has  a  rather  down- 
ward tendency  and  that  would  fit  in  rather  nicely  with  the  brimstone 
idea  that  was  spoken  of  in  Mr.  Dennis'  address  a  moment  ago — but 
there  seems  to  be  no  difference  in  the  lines  of  activity  in  which  you 
mining  men  engage.  You  stand  upon  a  common  platform  of  equal  rights 
and  privileges  as  you  meet  here  today,  and  you  stand  for  that  democracy 
that  centralizes  your  interests  and  establishes  a  commonality  of  purpose; 
you  stand  for  that  democracy  which  makes  you  greet  each  other's 
opinions  as  worthy  of  consideration  though  expressed  in  the  heat  of 
debate  and  controversy,  and  doubtless  some  of  the  great  national  issues 
will  be  discussed  on  this  floor,  and  they  will  excite  much  oratory  and 
much  heated  debate,  in  which  your  mettle  will  be  tried;  but  still  you  will 
give  weight  and  consideration  to  each  other's  opinion  in  a  way  that  will 
be  worthy  of  the  democracy  that  characterizes  your  organization.  I 
only  wish  that  the  old  world  was  as  far  advanced  in  establishing  that 
democracy  as  you  are  in  your  organization.  While  there  is  no  difference, 
practically,  between  the  coal  miner  and  the  copper  miner  and  these 


18  OFFICIAL    PROCEEDINGS 

others,  still  there  is  a  difference  in  the  ranks  of  men  that  come  to  use 
the  products  of  the  mines.  The  social  conditions  of  the  day  still  make 
a  great  distinction  between  the  goldsmiths  and  the  blacksmiths,  between 
the  millwright  and  the  diamond-setter;  and  yet  the  world  today  could 
do  without  its  goldsmith  and  its  diamond-setter,  but  it  could  not  do  very 
well  without  its  millwright  and  its  blacksmith.  We  are  moving,  how- 
ever, towards  the  new  industrial  democracy  in  which  we  appreciate  men 
not  because  of  the  fineness  or  gentility  of  the  work  that  they  do,  but 
because  of  their  honorableness  and  their  integrity,  because  of  the  con- 
tribution that  they  make  to  the.  welfare  and  the  progress  of  their  time; 
and  there  is  coming  a  new  sense  of  our  appreciation  of  the  men  who  have 
found  their  life's  work  in  lowly  pursuits,  and  in  a  Congress  recently 
held  in  this  city — practically  under  your  auspices — we  had  the  prospector, 
the  man  who  used  the  muck  stick,  the  man  who  drove  the  drill,  as  well 
as  the  man  who  furnished  the  money  and  the  man  who  sold  the  mining 
stock.  They  were  altogether,  and  it  was  a  great  family  of  common 
interests.  It  was  a  unique  organization,  I  think,  in  mining  activities.  We 
are  looking  forward  to  the  day  when  not  only  will  this  be  true  in  mining 
activities,  but  in  all  activities  of  our  great  American  civilization.  We  are 
looking  forward  to  the  time  when  we  shall  pay  our  due  tribute  to  the 
men  who  bring  to  our  tables,  to  our  great  markets  and  to  our  great 
exchanges  the  products  of  their  toil  and  who  are  making  this  world 
what  it  is  for  us  today,  the  best  world  that  men  ever  lived  in.  We 
may  not  live  to  see  many  of  the  things  achieved  whose  futures  we  are 
now  planning,  but  we  will  see  the  prophecy,  and  in  that  prophecy 
some  of  us  will  be  well  repaid.  We  may  not  live  the  nine  hundred  sixty 
and  nine  that  old  Methuselah  lived,  but  I  feel  that  it  is  better  to  live 
the  sixty-nine  years  in  America  than  the  other  nine  hundred  away  back 
there  in  ancient  Palestine.  It  is  because  of  this  new  spirit,  it  is  because 
of  this  new  note  of  confidence,  it  is  because  of  this  new  comradeship  that 
has  sprung  into  our  activities  and  relationships  in  general  in  which  you 
stand  as  pioneers  that  we  welcome  you  to  the  City  of  Spokane. 

May  these  days  of  yours  be  splendid  days,  ushered  in  by  the  sun- 
shine as  it  flows  through  the  windows  this  afternoon,  and  greeted  by 
the  smile  that  is  on  our  faces  and  the  warmth  that  is  in  our  hearts.  May 
this  Fifteenth  Conference  of  the  American  Mining  Congress  be  the 
best  ever  held,  and  whatever  the  conclusions  reached,  whatever  the  de- 
cisions arrived  at  in  your  deliberations,  may  they  all  tend  to  fulfill  the 
ideal  of  that  grand  old  Scottish  bard  as  he  looked  forward  to  the  great 
democracy  that  was  to  be  when  he  said:  "Then  let  it  come  as  come  it 
may,  and  come  it  will  for  a'  that,  when  man  to  man  the  world  o'er  shall 
brithers  be  for  a'  that." 

I  thank  you. 

THE  CHAIRMAN:  Mr.  Mayor,  I  wish  to  thank  you,  sir,  for  your 
kind  references;  but,  ladies  and  gentlemen,  knowing  that  I  had  better 
and  bigger  men  than  myself  to  follow  me,  I  took  it  upon  myself  to 
prepare  my  talk.  That  is  my  only  excuse,  my  only  reason.  The 
eloquence  of  Doctor  Hindley,  I  knew  what  it  would  be — as  you  have 
heard  it.  It  is  my  pleasure  to  introduce  another  one  of  our  City.  In 
Spokane  we  have  many  who  have  done  what  they  could  for  the  better- 
ment of  the  city  and  for  its  upbuilding;  and  it  seems  meet  that  we  should 
be  addressed  by  one  of  our  foremost  citizens,  a  gentleman  who  is 
President  of  our  Chamber  of  Commerce.  He  is  here  today  representing 
the  Governor  of  this  great  State  as  well  as  the  Chamber  of  Commerce. 
I  have  the  pleasure  and  honor,  ladies  and  gentlemen,  of  introducing  to 
you  Mr.  Robert  Insinger. 

MR.  R.  INSINGER:  Mr.  President,  ladies  and  delegates  to  the 
American  Mining  Congress:  After  the  two  eloquent  addresses  you  have 
heard  I  am  quite  sure  you  will  not  expect  from  me  anything  but  a  very 
short  but  sincere  welcome.  I  was  rather  disappointed  that  the  Governor 
should  not  be  here  but  I  have  a  telegram  from  him  which  I  will  read  to 
you:  "Impossible  for  me  to  be  in  Spokane  to  welcome  Mining  Congress. 
May  I  ask  you  to  act  for  me  in  this  pleasant  task?  M.  E.  Hay." 


AMERICAN    MINING    CONGRESS  10 

I  want  to  assure  you,  ladies  and  gentlemen,  and  delegates  of  the 
American  Mining  Congress,  all  of  you,  that  he  is  sincere  in  stating  that 
he  regrets  not  being  able  to  be  here,  but  most  of  you  know  that  he  has 
been  away  from  his  duties  several  times  and  that  he  has  attended  some 
meetings  here  in  Spokane  lately,  and  that  it  would  be  impossible  for  him 
to  return  at  such  short  notice.  I  think  that  the  Governor  in  selecting 
myself,  did  some  injustice  to  you  in  not  choosing  among  the  more  elo- 
quent speakers  and  the  more  prominent  citizens  of  Spokane,  but  I 
suppose  he  wanted  to  make  it  plain  by  selecting  the  President  of  the 
Chamber  of  Commerce  to  address  you  in  his  name  that  he  considered  the 
Mining  Congress  as  being  of  the  utmost  importance  to  the  business 
interests  of  Spokane,  and  of  the  Inland  Empire.  All  of  you  know  that  in 
its  circumference  are  mining  industries  of  different  kinds,  of  gold 
and  copper  and  coal  and  lead  and  zinc,  and  as  you  know  Spokane  is  in 
the  middle  of  a  circle  that  goes  from  the  Rocky  Mountains  to  the  Cas- 
cade Mountains,  so  it  is  no  wonder  that  we  consider  that  the  Mining 
Congress  is  one  of  the  most  important  congresses  that  we  can  have. 

I  am  not  going  to  trouble  you  by  quoting  you  the  details  of  what 
the  mining  industry  means  in  this  Inland  Empire,  and  we  have  in  this 
audience  probably  a  large  number  of  men  who  are  better  posted  on 
this  than  I  possibly  can  be.  I  can  only  assure  you  of  this  that  the  time 
was  when  Spokane  was  in  the  dumps  and  the  town  after  a  severe  panic 
was  practically  bankrupt  and  it  was  the  mining  industry  that  put  the 
town  again  on  its  feet  and  made  it  the  city  that  it  is  today.  That  is  an 
example  to  show  what  the  mining  industry  means  to  this  city. 

I  would  like  to  say  to  you,  I  suppose  it  is  proper  to  say  it,  that  you 
are  the  most  important  congress  that  ever  came  to  this  city,  but  I  beg 
you  to  excuse  me  from  saying  that  because  I  have  had  occasion  to 
address  several  other  congresses  and  I  have  always  had  the  temptation 
to  tell  them  that  they  were  the  most  important  congress,  but  I  never 
did.  But,  as  a  matter  of  fact  the  mining  industry,  however  important 
it  may  be,  is  not  the  most  important  we  have.  The  most  important 
industry  we  have  in  this  great  country  is  agriculture.  On  this  line, 
agriculture,  we  have  had  a  large  number  of  congresses  and  conventions 
for  several  years  past.  We  have  had  conferences  of  dry  farming  associa- 
tions and  agricultural  meetings,  and  irrigation  conventions  and  apple 
shows,  and  just  before  you  came  to  this  city  we  had  a  meeting  of 
the  Great  National  Grange,  and  at  each  of  these  occasions  we  have  been 
glad  to  see  them,  but  we  have  not  told  them  that  they  are  the  most 
important.  But  we  are  no  more  glad  to  see  them  than  we  are  to 
see  you. 

Usually  at  these  different  congresses  a  large  number  of  resolutions 
are  passed  and  a  large  number  of  requests  are  made  to  the  state  and  the 
national  congress  for  changes  in  the  laws  and  the  administration  of  the 
laws  affecting  each  industry.  The  Granges  have  made  them.  You  will 
probably  make  them.  And  when  the  Dry  Farming  congress  met  and 
the  Country  Life  congress  and  the  Irrigation  congress  meet  they  all 
make  resolutions,  and  I  have  no  doubt  but  that  you  will  do  the  same. 
You  will,  after  your  deliberations,  not  only  consider  the  matters  that 
pertain  to  the  technique  of  your  profession,  that  will  make  you  prevent 
waste,  that  will  make  your  vocation  more  profitable,  not  only  to  you 
but  to  the  whole  country,  but  you  very  probably  and  very  properly  will 
consider  such  changes  in  the  administrations  of  the  laws  of  the  nation 
and  state  as  you  consider  necessary  for  the  proper  exercising  of  your 
industry,  and  so  it  will  be  impossible  for  either  the  national  government 
or  either  the  governor  of  the  state  or  the  President  or  rather  for  the 
trustees  of  the  Chamber  of  Commerce  to  in  all  cases  reconcile  some 
times  conflicting  resolutions.  But  we  can  heartily  assure  you  that  both 
the  governor  of  the  state  and  myself  will  listen  to  your  resolutions 
with  a  sympathetic  ear,  and  that  the  arguments  that  you  bring  forward 
will  have  due  influence  both  with  the  governor  and  the  authorities  of 
the  state,  and  with  the  Chamber  of  Commerce.  However,  we  all  of  us 
recognize  that  your  industry  is  an  industry  that  is  largely  determined 


20  OFFICIAL    PROCEEDINGS 

by  the  acts  of  the  government  and  it  is  up  to  you  to  formulate  your 
desires  to  the  government,  and  anything  that  you  hope  to  pass,  Mr. 
President,  I  hope  that  you  will  not  be  backward  in  asking  us  for  full 
assistance  in  these  matters. 

As  I  promised  you,  I  will  be  short.  There  is  only  one  subject  I 
would  like  to  talk  about  and  it  is  a  very  short  one.  As  I  said  before, 
many  industries  are  represented  in  this  city  of  importance  and  yours  is 
one  of  them,  and  as  such,  gentlemen,  I  can  probably  enlist  your  sympa- 
thies from  another  side.  You  have  all  heard  it  said  and  have  often  read 
it  that  we  are  a  practical  people,  given  purely  to  the  making  of  dollars; 
that  we  are  not  specially  given  to  poetry,  nor  to  romance  of  the  soul; 
but  I  think  if  you  consider  one  point  you  will  find  that  we  have  more 
romance  and  more  poetry  in  the  minds  of  the  American  people  than  in 
any  nation  in  God's  world  and  it  is  due  entirely  to  the  pioneers  and 
the  mining  men  of  the  United  States.  The  country,  and  the  west  par- 
ticularly, was  opened  up  by  the  pioneers  and  the  mining  men  who 
forced  their  way  through  the  arid  wastes  and  desert  and  led  the  home- 
steaders to  the  valleys.  They  blazed  the  way  over  the  mountains  for 
the  railways  that  bound  the  east  to  the  west.  They  have  impregnated 
the  American  character  with  this  desire  to  take  some  chances  and  with 
this  spirit  of  adventure  and  this  spirit  of  poetry  that  permeates  our 
literature  and  makes  the  American  people  different  from  any  people  in 
God's  world. 

Mr.  President,  and  ladies,  and  delegates  to  this  congress:  In  the 
name  of  the  Governor  of  the  State,  I  bid  you  a  hearty  welcome  to  the 
state,  and  in  the  name  of  the  Chamber  of  Commerce  I  bid  you  a  hearty 
welcome  to  anything  in  which  we  can  help  you,  and  while  you  are  here 
we  hope  you  will  have  a  pleasant  time.  I  thank  you. 

THE  CHAIRMAN:  Ladies  and  gentlemen:  I  want  to  introduce  to 
you  the  man  who  has  made  it  possible  to  complete  the  arrangement 
successfully  for  the  holding  of  this  convention  in  Spokane.  He  has 
some  statements  to  make  to  you  which  you  should  know  of.  I  introduce 
to  you,  ladies  and  gentlemen,  Mr.  Sidney  Norman.  (Applause.) 

MR.  SIDNEY  NORMAN,  (Spokane,  Wash.):  Mr.  President, 
ladies  and  gentlemen:  On  behalf  of  the  local  entertainment  committee 
I  wish  to  make  a  few  announcements  which  I  hope  you  will  bear  in  mind. 
In  the  first  place  the  reception  to  the  president,  Mr.  Taylor,  will  take 
place  at  the  Spokane  Club  tonight.  That  will  be  an  entirely  informal 
affair,  and  we  hope  every  man  here  will  be  at  the  club  with  his  wife 
or  sweetheart.  Tomorrow  at  the  Chamber  of  Commerce  it  will  be 
American  Mining  Congress  day  at  their  weekly  luncheon.  The  Presi- 
dent of  the  Congress  with  several  other  officials  will  be  guests  there 
and  every  delegate  is  invited  to  be  at  the  Chamber  of  Commerce  at  12 
o'clock.  The  luncheon  will  be  over  promptly  at  one,  so  that  we  shall 
not  lose  any  time.  On  Wednesday  the  Ad  Club  has  made  special  ar- 
rangements for  the  entertainment  of  the  delegates  to  the  American 
Mining  Congress  at  their  weekly  luncheon  to  be  given  at  the  hall  of  the 
Doges  at  Davenports.  There  will  be  no  ladies  present  at  that  luncheon. 
All  be  there.  The  ladies'  reception  which  is  given  in  honor  of  the  wives 
of  the  delegates  to  this  convention  will  take  place  at  the  Inland  Club,  at 
three  o'clock  on  Wednesday.  We  hope  that  all  the  visiting  ladies  will 
be  there  and  that  also  that  the  local  ladies  will  make  it  a  point  to  be 
there  to  help  welcome  the  visitors.  On  Thursday  night  it  will  be  Ladies' 
night  out  at  the  Spokane  Diggin's.  We  have  prepared  a  splendid  vaude- 
ville programme  for  them.  We  will  see  that  a  dance  is  provided 
throughout  the  entire  evening  and  everybody  will  have  a  pretty  good 
time.  I  hope  that  every  delegate  will  be  there  with  a  lady;  and  by  the 
by  I  wish  to  announce  in  that  connection  that  tickets  for  the  ladies 
were  not  provided  in  the  coupon  book.  If  you  will  let  the  man  in  charge 
at  headquarters  know  that  you  have  brought  the  ladies  with  you  he 
will  see  to  it  that  a  ticket  for  you  is  given  to  that  lady.  Friday  night 
in  regard  to  the  Coeur  d'Alene  excursion.  As  you  probably  know  we 
will  be  Stag  night  at  the  Spokane  Diggin's.  The  last  announcemwtt  is 


AMERICAN    MINING    CONGRESS  21 

are  going  to  take  a  special  train  trip  to  the  Coeur  d'Alenes  on  Saturday 
leaving  at  8  a.  m.  The  delegates,  or  at  least  a  part  of  them,  as  many  as 
we  can  accommodate,  will  be  taken  free.  Tickets  will  be  placed  with  the 
man  in  charge  of  headquarters  on  Thursday  morning.  We  are  trying  to 
arrange  a  trip  to  Republic  also  but  so  far  we  have  not  had  sufficient 
reservation  to  justify  us  in  that. 

THE  CHAIRMAN:  The  special  and  peculiar  pleasure  that  I  have 
as  Chairman  today  is  to  introduce  to  you  a  gentleman  who  is  one  of  the 
foremost  men  in  the  industry  of  mining,  a  man  whose  fame  is  nation 
wide,  a  man  who  has  done  as  much  for  practical  mining  as  any  man, 
within  the  bounds  of  this  country.  Little  did  I  think  when  a  boy  that 
it  would  ever  be  my  privilege  from  the  rostrum  to  announce  as  big  a 
man  or  as  good  a  man  as  Mr.  S.  A.  Taylor  of  Pittsburgh,  President  of 
the  American  Mining  Congress.  Ladies  and  gentlemen:  I  now  intro- 
duce to  you  the  Honorable  S.  A.  Taylor,  who  will  preside  over  your 
further  deliberations. 

PRESIDENT  TAYLOR:  Ladies  and  gentlemen:  After  the  intro- 
duction that  has  just  been  given  to  you  I  fear  that  I  will  not  be  able 
to  measure  up  to  its  specifications,  but  fortunately  for  me,  the  organiza- 
tion which  we  represent  at  this  time  has  not  delegated  to  its  President 
the  entire  duty  of  replying  to  these  invitations  and  to  the  hearty  wel- 
come which  we  have  received;  but  in  behalf  of  the  American  Mining 
Congress,  I  wish  to  say  to  you,  Mr.  Chairman,  and  all  of  those  who 
have  spoken  that  we  appreciate  very  much  the  very  hearty  and  gracious 
welcome. 

The  Mining  Congress  in  its  past  has  endeavored  to  meet  from  time 
to  time  in  different  locations  in  the  United  States  that  would  be  central 
to  the  mining  industries  of  different  kinds.  When  you  are  back  in 
the  East,  in  Pittsburgh,  we  speak  of  the  West  and  think  of  Chicago; 
when  you  come  to  Chicago  they  speak  of  the  West  and  they  think  of 
Denver;  when  you  come  to  Denver  they  speak  of  the  West  and  they 
think  of  Salt  Lake  and  Butte,  and  when  you  come  to  those  places  again 
they  speak  of  the  West  and  think  of  Spokane.  I  don't  know  where 
would  be  the  center  of  the  mining  industry  in  the  United  States,  but  I 
thought  as  the  speaker  was  mentioning  the  fact  that  here  should  be 
erected  the  great  temple  of  mining,  that  possibly  Spokane  is  not  far 
from  the  center  of  the  mining  industry  of  the  United  States  of  America. 
If  we  could  conceive  in  our  minds  for  a  moment  some  great  Colossus 
standing  in  Spokane  with  arms  outstretched,  say  for  twenty-five  hundred 
miles  in  length  which  would  sweep  the  boundaries  from  Nome,  Alaska, 
to  the  great  southwest  and  to  Texas  and  that  would  take  in  the  placer 
mines  of  California  and  the  mines  of  Mexico  and  would  include  and 
would  sweep  the  great  northwest  from  the  Hudson  Bay  to  the  great 
mines  of  Pennsylvania  and  the  east  and  include  practically  all  of  the 
mining  industries  in  North  America,  Spokane  would  not  be  a  bad  loca- 
tion as  a  center  of  mining.  I  am  not  going  to  detain  you  at  this  time 
only  again  to  thank  you  in  behalf  of  the  Mining  Congress  for  this  splen- 
did reception.  In  accordance  with  the  custom  of  the  organization,  I  am 
going  to  call  on  those  who  have  been  delegated  to  respond  to  the 
splendid  words  of  welcome.  We  hope  that  these  responses  will  not 
be  extended,  not  to  exceed  a  five  minute  period  each.  We  will  call  as 
our  next  speaker  the  representative  from  the  Peruvian  government,  Mr. 
Glenville  A.  Collins. 

MR.  COLLINS:  It  is  very  unfortunate  that  the  Minister  of  Peru 
is  not  present  at  this  important  gathering.  The  position  of  a  substi- 
tute is  not  satisfactory  to  the  country  or  the  congress.  Peru  is  very 
much  interested  in  the  mining  industry.  In  fact,  mining  is  paramount 
in  that  country.  Most  people  think  that  Peru  is  very  far  off,  but  on 
completion  of  the  Panama  Canal,  Peru  will  be  within  three  thousand 
miles  of  New  York  City;  in  fact,  a  lesser  distance  than  from  San 
Francisco.  Peru  is  largely  dependent  upon  the  United  States  for  its 
supplies  for  the  mining  industry  and  naturally  looks  to  this  country 
for  the  solution  of  many  of  its  problems.  That  country  of  four  million 


22  OFFICIAL    PROCEEDINGS 

five  hundred  thousand  people,  situated  between  the  lofty  Andes  and  the 
Amazon  and  the  Pacific  Ocean,  produces  petroleum  in  quantities  second 
only  to  the  United  States.  Its  mines  range  in  altitude  from  sea  level 
to  seventeen  thousand  feet  in  height  and  are  often  dependent  upon  splen- 
did pieces  of  railroad  construction  in  order  to  get  to  them. 

Peru  is  greatly  interested  in  the  deliberations  of  this  Congress  and 
hopes  to  derive  much  that  will  be  of  benefit  to  itself.  I  thank  you. 
(Applause.) 

THE  PRESIDENT:  The  next  speaker  will  be  Mr.  E.  Jacobs  of 
British  Columbia,  Canada,  our  sister  country  on  the  north. 

MR.  JACOBS,  (Victoria,  British  Columbia):  Mr.  Chairman,  ladies 
and  gentlemen:  It  gives  me  much  pleasure,  on  behalf  of  the  delegates 
from  British  Columbia  who  are  here  today,  to  acknowledge  with  many 
thanks  and  much  appreciation  the  cordial  welcome  extended  to  us,  among 
the  many  other  visitors,  by  the  citizens  of  Spokane.  I  am  here  in  an 
unofficial  capacity,  but  as  I  have  long  been  and  still  am  actively  engaged 
in  giving  publicity  to  matters  relating  to  the  mining  industry  of  British 
Columbia,  I  am  glad  to  have  been  given  this  opportunity,  by  Mr.  Call- 
breath,  Secretary  of  the  Congress,  to  tell  you  something  in  a  general 
way  of  that  industry. 

Of  the  382,000  square  miles  of  territory  in  British  Columbia,  ap- 
proximately 300,000  square  miles  is  known  to  be  extensively  mineralized, 
and  today  most  of  this  remains  a  virgin  field  for  the  prospector  and 
investor  in  undeveloped  prospects. 

British  Columbia  is  part  of  the  great  Cordilleran  belt  which,  in 
South  America,  Mexico  and  the  Western  United  States,  is  recognized 
as  one  of  the  greatest  mining  regions  of  the  world,  noted  principally  for 
its  wealth  in  gold,  silver,  copper,  and  lead — unparalleled  for  continuity, 
extent  and  variety  of  its  mineral  resources.  In  Canada  and  Alaska  this 
belt  maintains  its  reputation,  though  for  the  greater  part  unprospected. 
In  Canada,  where  it  also  has  enormous  resources  of  coal  of  excellent 
quality,  it  has  a  length  of  1300  and  a  width  of  400  miles.  It  is  pre- 
eminently a  great  mining  region. 

Ten  years  ago  Mr.  Bernard  MacDonald,  who  for  several  years  was 
managing  Rossland  mines,  read  before  the  Canadian  Mining  Institute  a 
paper  on  "Mining  Possibilities  of  the  Canadian  Rockies,"  and  in  that  he 
showed  that  in  Mexico  the  Rocky  Mountains  had  yielded  of  the  precious 
metals  alone  a  production  of  $5,500,000,000  over  a  length  of  1700  miles,  or 
an  average  of  $3,142,857  a  mile;  in  the  United  States,  $4,500,000,000  or 
$3,461,538  a  mile  along  a  length  of  1300  miles;  while  in  Canada  the  total 
had  reached  only  $166,000,000,  or  $103,759  a  mile  for  1700  miles.  Later, 
Mr.  MacDonald  remarked:  "It  is  fair  to  assume  that  the  Rockies  in 
Canada  will  yield  a  quantity  of  the  precious  metals  equal  to  that  pro- 
duced by  them  in  American  or  Mexican  territory — mile  for  mile  of  their 
length — when  equally  developed."  (The  value  of  the  gold  and  silver 
produced  in  British  Columbia  during  the  nine  years  that  have  elapsed 
since  Mr.  MacDonald  spoke  is  about  $60,000,000.)  It  should  be  noted 
that  much  of  the  Cordilleran  belt  in  Canada  is  in  British  Columbia. 

Let  me  add,  in  passing,  that  the  area  and  probable  coal  content  of 
the  coalfields  of  Western  Canada  have  been  placed  by  Mr.  D.  B.  Dowl- 
ing,  of  the  Geological  Survey  of  Canada,  at  37,000  square  miles  and 
169,000  million  tons  of  coal  (or  97  per  cent  of  that  of  the  whole  of 
Canada)  as  against  432  square  miles  and  only  5212  million  for  Nova 
Scotia  and  New  Brunswick,  which  have  long  been  the  chief  coal- 
producing  provinces  of  Canada.  The  estimate  for  British  Columbia  is 
1351  square  miles  and  40,225  million  tons  om  minable  coal. 

The  first  known  discovery  of  mineral  in  British  Columbia  was 
made  near  the  eastern  shore  of  Kootenay  Lake,  in  1825,  by  Mr.  David 
Douglas,  a  Scottish  botanist,  who  was  investigating  the  flora  and  fauna 
of  that  district.  Later,  Hudson  Bay  Company  trappers  made  bullets 
from  the  lead  ore  outcropping  there,  while  in  1864  Mr.  (afterward  Sen- 
ator) George  Hearst  of  California  took  in  a  small  open-hearth  furnace 
and  smelted  some  ore,  but  the  low  grade  of  the  bullion  he  obtained,  the 


AMERICAN    MINING    CONGRESS  23 

long  distance  from  market,  and  the  absence  of  transportation  facilities, 
discouraged  him  so  that  he  abandoned  his  enterprise.  Late  in  the 
eighties  Dr.  W.  A.  Hendryx  and  associates  from  Connecticut  and  Minne- 
sota, who  had  been  on  Kootenay  Lake  for  sport,  became  interested  and 
acquired  the  property,  afterward  erecting  a  lead  smeltery  in  the  neigh- 
borhood, but  they,  too,  eventually  gave  up  the  venture  as  unprofitable. 
Today,  a  New  England  man  (Mr.  S.  S.  Fowler),  a  Columbia  University 
graduate,  in  the  capacity  of  general  manager,  is  operating  this  property, 
now  known  as  the  Bluebell  mine,  for  a  French  company — the  New 
Canadian  Metal  Company. 

Coal  was  first  discovered  in  British  Columbia  in  1835  by  Hudson 
Bay  Company  officials  at  Fort  Rupert,  Vancouver  Island.  In  1851  min- 
ing operations  were  commenced  at  Nanaimo,  also  on  Vancouver  Island, 
and  later  the  chief  market  for  the  coal  produced  was  found  in  San  Fran- 
cisco, to  which  city  much  of  it  still  is  sent.  The  Nanaimo  mines  are 
now  owned  by  a  San  Francisco  organization — the  Western  Fuel  Com- 
pany. Up  to  dale  more  than  22,000,000  long  tons  of  coal  has  been 
produced  by  Vancouver  Island  mines. 

In  1858  gold  was  found  on  Thompson  and  Fraser  Rivers,  and  1860- 
1861  the  enormously  rich  placer-geld  fields  of  Cariboo  were  opened.  It 
is  an  old  story  how  people  hurried  from  San  Francisco  in  thousands; 
how  they  crossed  the  Isthmus  of  Panama,  or  rounded  Cape  Horn,  or 
plodded  wearily  overland  from  Canada  and  the  United  States.  Wrote 
the  historian:  "Victoria  became  a  city  in  a  day,  and  the  Mainland  soli- 
tude was  converted  into  a  crown  colony  in  a  year."  Since  then  those 
gold  fields  have  yielded  about  $50,000,000,  and  are  still  being  worked 
profitably. 

In  the  late  eighties  the  production  of  lode  metals — silver  and. lead — 
was  commenced;  in  1893  gold  was  added,  and  the  next  following  year 
copper  was  produced. 

Concerning  mineral  production — The  aggregate  value  of  all  min- 
erals produced  in  British  Columbia  to  the  end  of  1911  is  on  official  record 
as  $397,696,000,  of  which  approximately  $72,000,000  is  for  placer  gold, 
$65,000,000  for  lode  gold  (total  for  gold,  $137,000,000),  $32,000,000  for 
silver,  $26,000,000  for  lead,  $65..000,000  for  copper,  $122,000,000  for  coal 
and  coke,  and  $15,000,000  for  miscellaneous  minerals. 

The  aggregate  value  of  the  mineral  production  of  all  Canada  for 
26  years,  to  1911,  inclusive,  is  $1,235,525,000.  Of  this  total  British  Co- 
lumbia's proportion  is  about  $333,696,000,  or  between  26  and  27  per  cent. 
It  is  a  striking  fact,  indicating  the  great  increase  in  recent  years,  that 
37  per  cent  of  British  Columbia's  production  was  made  in  the  last  five 
years,  while  more  than  half — about  51  per  cent — was  that  of  seven  years, 
1905-1911. 

A  word  or  two  as  to  individual  properties.  The  Granby  Consoli- 
dated Company  has  mined  and  smelted  to  date  more  than  8,000,000  tons 
of  copper  ore,  from  which  was  produced  about  191,000,000  Ib.  of  copper, 
3,000,000  oz.  of  silver,  and  465,000  oz.  of  gold.  Its  gross  receipts  for 
nine  fiscal  years,  June  30,  1904-1912,  have  been  nearly  $33,000,000,  and 
its  expenditures  $25,600,000,  leaving  net  earnings  $7,400,000,  of  which 
last-mentioned  amount  more  than  one-half  has  been  distributed  in  divi- 
dends. Today  the  company  has,  in  its  mines  in  Phoenix  camp,  Boun- 
dary district,  between  6,000,000  and  7,000,000  tons  of  ore  "estimated  in 
sight."  Its  smeltery  at  Grand  Forks,  B.  C.,  is  stated  to  be  the  largest 
copper  reduction  works  in  the  British  Empire.  In  1910 — last  year  was 
a  broken  year — it  mined  and  smelted  1,178,000  tons  of  ore  at  a  cost, 
including  converting  (but  not  marketing)  of  copper,  of  $2.50  a  ton. 
Today  its  smelting  and  converting  costs  (not  including  mining)  are 
about  $1.20  a  ton  of  ore.  In  its  new  mine  at  Hidden  Creek,  Observatory 
Inlet,  it  already  has,  "estimated  in  sight,"  more  than  5,000,000  tons  of 
ore,  having  an  average  copper  content  of  between  40  and  50  Ib.  to  the 
ton,  and  engineers  report  at  least  as  much  more  of  "probable  ore."  All 
Boundary  district  mines  have,  together,  produced  about  $60,000,000  worth 
of  ore,  gross  value 


24  OFFICIAL    PROCEEDINGS 

Rossland  camp's  production  has  totalled  about  $55,000,000.  The 
Consolidated  Mining  and  Smelting  Company's  Rossland  mines  have 
produced  3,376,000  tons  of  ore,  with  a  gross  value  of  $45,000,000,  this 
including  1,624,000  oz.  of  gold.  That  company's  St.  Eugene  mine,  in 
East  Kootenay,  developed  and  long  operated  by  Messrs.  James  Cronin 
and  John  A.  Finch  of  this  enterprising  city  of  Spokane,  has  produced 
1,015,000  tons  of  ore,  which  contained  5,319,000  oz.  of  silver  and  227,615,- 
000  Ib.  of  lead,  having  together  a  gross  value  of  $10,526,000.  The  com- 
pany's lead  and  copper  smeltery  at  Trail,  B.  C,  has  treated  in  all  years 
3,144,000  tons  of  ore  and  concentrate,  having  a  gross  value  of  $52,167,000. 
The  Betts'  electrolytic  process  for  refining  lead  was  first  used  on  a 
commercial  scale  at  Trail,  under  the  direction  of  Mr.  Jules  Labarthe, 
now  general  manager  for  the  Mason  Valley  Mines  Company  and  here 
with  you  today  as  a  delegate  from  Nevada. 

Permit  me,  in  conclusion,  to  briefly  refer  to  the  mining  laws  of 
British  Columbia.  I  have  with  me  for  free  distribution  a  number  of 
copies  of  a  pamphlet  printed  for  the  Department  of  Mines,  Victoria, 
B.  C,  in  which  those  interested  may  find  a  synopsis  of  these  laws.  It 
is  claimed  for  them  that  they  are  very  liberal  in  their  nature  and  com- 
pare favorably  with  those  of  any  other  part  of  the  world.  The  Coal 
Mines  Regulation  Act  is  considered  about  the  best  in  force  in  the  British 
Empire — perhaps  in  the  world.  Sir  Richard  McBride,  premier  and  min- 
ister of  mines  for  British  Columbia,  when  addressing  the  Canadian 
Mining  Institute  a  few  weeks  ago,  said:  "We  do  not  say  that_  this 
legislation  is  perfect  and  stands  for  the  last  word  in  the  way  of  mining 
regulations,  but  we  do  claim  that  it  is  an  immeasurable  advance  on  any 
legislation  in  a  similar  direction  heretofore  attempted  in  any  of  the 
provinces  of  Canada,  and  has  well  proved  the  wisdom  of  having  it 
placed  on  the  statute  books  of  the  province."  And  what  is  of  equal 
importance,  the  mining  laws  of  British  Columbia  are  enforced. 

Mr.  President  and  gentlemen,  I  thank  you  for  your  kindness  in 
having  afforded  me  this  opportunity  of  addressing  you  briefly  concern- 
ing mining  in  British  Columbia,  and  for  the  attentive  hearing  you  have 
so  considerately  given  me. 

THE  PRESIDENT:  The  Secretary  wishes  to  make  an  announce- 
ment. 

SECRETARY  CALLBREATH:  I  desire  to  announce  that  the 
Resolutions  Committee  is  made  up  of  one  representative  from  each 
state  and  province  represented  in  the  Convention  selected  by  the  dele- 
gation. I  desire  to  ask  each  state  delegation  to  hold  a  caucus  and  be 
prepared  at  the  opening  session  tomorrow  morning  to  announce  its 
member  of  the  Resolutions  Committee.  Please  remember  that  the 
work  of  the  Resolutions  Committee  is  the  most  important  of  the  Con- 
vention and  select  your  best  men  for  this  committee.  Let  each  delega- 
tion be  ready  to  report  at  the  opening  session  tomorrow  morning  the 
name  of  its  member  of  the  Committee  on  Resolutions. 

THE  PRESIDENT:  We  will  now  hear  a  response  on  behalf  of 
Alaska  by  Mr.  George  E.  Baldwin  of  Valdez,  Alaska.  (Applause.) 

MR.  BALDWIN:  The  American  Mining  Congress  has  with  great 
liberality  given  one  session  of  its  deliberations  here  to  the  discussion  of 
Alaskan  affairs,  and  to  take  up  any  of  your  time  now  would  certainly  be 
imposing  on  that  liberality.  I  wish  to  thank  you,  Sir,  for  that  and  to 
thank  the  citizens  of  Spokane  on  behalf  of  the  Alaska  delegation  for 
the  magnificent  reception  we  have  received  (applause). 

THE  PRESIDENT:  We  will  next  hear  from  Colorado,  Mr.  J.  F. 
Erisman  of  Denver.  In  his  absence  I  think  we  will  have  to  call  on 
Secretary  Callbreath. 

SECRETARY  CALLBREATH:  May  I  delegate  this  honor  to  Mr. 
Wolcott,  who  is  also  from  Denver? 

MR.  E.  L.  WOLCOTT,  (Denver,  Colo.):  Mr.  Chairman,  ladies 
and  gentlemen:  I  have  been  substituted  for  Mr.  Erisman  who  was 
called  on  to  respond  to  your  address  of  welcome  for  Colorado. 


AMERICAN    MINING    CONGRESS  25 

I  am  not  going  to  make  an  excuse  for  Colorado  because  Colorado 
doesn't  need  an  excuse  when  it  comes  to  the  mining  business.  A  very 
large  part  of  the  metal  miners  of  the  United  States  today  got  their  first 
knowledge  of  mining  in  the  state  of  Colorado.  From  one  end  of  the 
metal  mining  sections  of  the  country  to  the  other  it  has  been  my 
pleasure  to  travel  in  the  interest  of  this  great  association  and  I  have  yet 
to  find  a  camp  in  which  I  failed  to  find  an  ex-Coloradoan,  a  man  who 
had  begun  his  mining  experience  in  the  grand  old  state  whose  atmos- 
phere is  so  clear  that  you  can  see  a  donkey  wink  five  miles  off.  In 
the  state  of  Arizona  there  is  a  river  known  as  the  Hasayampa.  When  a 
tenderfoot  arrives  in  Arizona  he  is  taken  to  this  river  and  after  he  takes 
a  drink  from  the  cool  waters  of  the  Hasayampa  he  never  again  speaks 
the  truth.  That  doesn't  apply  to  Colorado.  But  when  a  tenderfoot 
strikes  the  state  of  Colorado  and  he  gets  one  breath  of  the  ozone  which 
comes  down  from  the  mountains,  he  never  knows  there  is  another  state 
in  the  Union. 

In  1893  our  state  was  known  as  a  silver  producing  state.  Then 
silver  was  demonetized.  You  remember  the  great  panic  that  swept  this 
country.  Well,  the  mining  men  of  Colorado  said,  All  right,  if  you  don't 
want  silver  we  will  give  you  gold;  and  Cripple  Creek  began  to  trickle  its 
eighteen  million  dollars  a  year  into  the  channels  of  trade. 

I  want  to  bring  greetings  from  the  great  state  of  Colorado.  The 
American  Mining  Congress  had  its  birth  there.  It  has  its  headquarters 
there.  It  has  endeavored  to  assist  in  bettering  mining  conditions  all 
over  the  country.  We  hope  to  reach  every  point  where  mining  is  done 
and  that  through  the  Mining  Congress  every  need  of  the  mining  industry 
may  find  its  most  effective  expression.  I  thank  you. 

THE  PRESIDENT:  The  next  speaker  will  be  Mr.  Paul  Clagstone 
of  Clagstone,  Idaho. 

MR.  CLAGSTONE:  Mr.  Chairman,  and  gentlemen  of  the  Amer- 
ican Mining  Congress,  gentlemen  of  the  welcoming  committee,  ladies 
and  gentlemen:  In  expressing  the  appreciation  of  the  Idaho  delegates  to 
this  hearty  welcome,  I  wish  to  say  that  it  is  with  unusual  pleasure  that 
we  attend  a  mining  convention  held  in  the  city  of  Spokane.  The  active 
and  energetic  citizens  of  Spokane  have  been  most  prominently  identi- 
fied with  the  mining  development  not  only  in  British  Columbia,  Montana, 
Washington,  Oregon,  California  and  Nevada  and  other  parts  of  the 
Northwest  but  their  energies  have  perhaps  been  most  prominently 
identified  with  the  development  of  the  great  mining  resources  of  the 
neighboring  state  of  Idaho. 

When  the  great  gold  camps  of  Pierce  and  Boise  City  were  on  the 
wane,  gold  was  discovered  in  the  heavily  timbered  mountains  of  the 
Coeur  d'Alenes,  and  while  the  rush  to  this  new  gold  field  was  still  at 
its  height  the  world  was  startled  by  the  discovery  of  silver  lead  ore 
bodies  of  unusual  extent.  The  development  of  extensive  ore  bodies  of 
this  extent  in  a  new  and  rugged  country  is  usually  attended  with  con- 
siderable delay  but  due  very  largely  to  the  enterprise  and  activity  of 
the  Empire  Builders  of  Spokane,  not  only  capital  was  provided  but 
also  means  of  transportation  for  the  development  and  for  an  outlet 
for  these  great  mines.  The  result  was  a  remarkably  rapid  development 
of  these  great  silver  lead  mines  which  in  a  short  time  came  to  be  known 
as  among  the  greatest  in  the  whole  world. 

At  the  present  time  Idaho  is  not  known  as  strictly  a  mining  state. 
Great  areas  of  irrigated  land  have  been  developed  in  the  last  few  years 
and  other  agricultural  resources  have  come  to  the  front,  vast  timber 
lands  have  been  opened  up,  water  power  has  been  developed  and  there 
has  been  a  great  growth  of  the  stock  industry  so  that  Idaho,  the  Gem 
of  the  Mountains,  at  the  present  time  is  known  as  a  state  of  varied  re- 
sources. In  spite  of  the  fact  that  these  new  resources  have  come  so 
prominently  to  the  front,  however,  the  mining  industry  of  Idaho  has 
not  by  any  means  declined  and  the  state  Bureau  of  Immigration 
informs  me  that  at  the  present  time  the  annual  output  of  Idaho  in 
minerals  amounts  to  between  twenty  and  twenty-five  million  dollars. 


26  OFFICIAL    PROCEEDINGS 

We  should  like  to  take  you  to  our  great  gold  camps  and  other 
mining  camps  of  Idaho;  we  should  like  to  show  you  the  great  produc- 
tion which  is  at  present  taking  place  by  means  of  modern  dredges  of 
gold  in  the  old  Boise  Basin  country;  we  should  like  to  take  you  to  Belle- 
ville where  recent  strikes  of  great  richness  have  recently  brought  those 
camps  to  the  front;  we  should  like  to  show  you  the  lead  mining  oppor- 
tunities of  the  country  of  the  Seven  Devils,  but  your  stay  is  of  such 
short  duration  that  this  would  not  be  practical,  and  our  state  is  of  such 
a  great  extent  that  this  would  be  impossible  in  the  short  time  at  our 
disposal,  but  I  am  glad  to  say  that  arrangements  have  been  made  to 
show  you  the  great  mines  of  the  Coeur  d'Alenes,  and  next  Saturday  and 
Sunday  we  are  looking  forward  to  extending  to  you  a  real  Idaho  wel- 
come. 

We,  in  Idaho,  are  acquainted  with  the  well-known  hospitality  of 
Spokane  and  we  are  looking  forward  to  a  week  not  only  of  most  inter- 
esting discussion  of  vital  importance  to  the  mining  industry  but  also  to 
a  period  of  royal  good  fellowship.  Certainly  in  no  other  city  in  the 
country  could  we  find  fellowship,  good  fellowship  and  hospitality  of  a 
like  quality  and  in  very  few  of  them  could  we  find  hospitality  equal 
to  that  which  is  always  extended  to  us  here  in  Spokane.  It  is  as  well, 
I  suppose  for  the  interests  of  the  mining  industry  that  these  meetings 
should  be  changed  from  year  to  year  to  different  cities,  but  I  know 
that  the  Idaho  delegates  at  any  rate  look  forward  to  the  time  when 
its  regular  rotation  shall  bring  us  once  more  to  this  energetic  city  of 
energetic  and  enterprising  citizens  whose  activities  have  done  so  much 
toward  the  mining  development  of  the  Northwest.  I  thank  you.  (Ap- 
plause.) 

THE  PRESIDENT:  The  next  speaker  we  have  is  from  Illinois, 
Mr.  David  Ross,  the  State  Commissioner  of  Labor,  Springfield,  111. 

MR.  ROSS:  Mr.  President:  I  had  no  intimation  that  this  honor 
was  to  be  thrust  upon  me  and  that  I  was  to  talk  for  Illinois  on  this 
occasion  and  I  don't  know  that  I  could  better  explain  my  unexpected 
connection  with  these  exercises  than  by  relating  the  story  of  the  gen- 
tleman whose  wife  caught  him  in  a  rather  caressing  attitude  with  one 
of  the  house-maids.  She  said,  "Mr.  Wilson" — and  that  was  the  first 
time  she  had  used  his  last  name  in  their  twenty  years  of  married  life — 
"I  am  surprised."  He  said,  "My  dear,  you  are  not.  You  may  be 
shocked  but  it  is  me  that  is  surprised."  So  much  after  all  depends  on 
the  viewpoint.  The  old  lady  whom  time  had  left  with  but  two  teeth, 
thanked  God  that  they  were  set  opposite  each  other.  And  the  boy  who 
was  unlucky  enough  to  lose  two  of  his  fingers  found  some  consolation 
in  the  fact  that  he  had  reduced  by  at  least  twenty  per  cent,  the  labor  of 
washing  and  manicuring.  I  guess  Aristotle  after  all  was  right  when  he 
said  there  was  no  such  thing  as  absolute  knowledge  and  founded  a 
philosophy  based  on  the  proposition  that  what  we  know  or  what  we 
think  we  know  is  conditioned  on  something  else,  and  that  all  knowl- 
edge is  relative.  For  instance,  the  delegates  from  the  East,  so  called, 
who  dropped  into  your  city  this  morning  could  form  no  intelligent 
conception  of  what  the  city  of  Spokane  with  its  splendid  street  car 
system  and  its  great  business  institutions  and  banks  and  people  mean. 
But  the  man  who  lived  here  in  1880  when  you  had  only  three  hundred 
people  and  who  has  grown  up  through  all  these  evolutions  understands 
more  correctly  what  Spokane  means  now.  It  is  necessary  to  get  that 
relative,  that  comparative,  that  contrasting  view  in  order  to  comprehend 
just  what  it  means.  I  sometimes  illustrate  that  by  relating  the  experi- 
ence of  the  gentleman  who  looked  for  the  first  time  into  a  blast  furnace 
and  he  asked  the  gentleman  who  was  operating  it  if  he  thought  hell 
was  any  hotter  than  that  and  the  gentleman  who  was  operating  the 
furnace  had  been  raised  in  my  church,  the  Presbyterian  church,  and  his 
education  on  the  subject  of  Hell  when  he  was  a  young  boy  had  not 
been  neglected,  and  he  looked  into  the  wondering  man's  eyes  and  said, 
"My  friend,  if  when  you  shuffle  off  this  mortal  coil  you  should  locate  in 
the  Bad  Lands  and  some  sorrowing,  suffering,  sympathetic  soul  would 


AMERICAN    MINING    CONGRESS  27 

hand  you  a  saucer  full  of  that,  you  would  think  it  was  ice  cream" 
(laughter). 

Our  President  Taylor  emphasized  the  same  thought  in  his  reference 
to  the  West.  I  think  it  is  Kipling  who  tells  us  "the  East  is  East  and 
the  West  is  West,  and  never  the  twain  will  meet."  Well,  I  have  been 
busy  in  the  last  fifteen  years  of  my  little  life  in  trying  to  locate  the  West. 
Illinois  a  week  before  last  was  considered  the  West.  We  were  a  long 
ways  from  what  the  people  supposed  was  the  East  and  yet  I  have 
traveled  three  days  and  three  nights  from  Chicago  to  find  myself  in  the 
beautiful  city  of  Spokane  and  I  have  not  yet  reached  the  limits  of  the 
Western  country.  Why,  it  is  not  so  very  many  weeks  ago  when  a  native 
of  Illinois,  if  he  had  dropped  unexpectedly  into  Wall  Street,  New  York, 
would  have  created  a  riot.  They  would  have  regarded  him  as  a  man 
with  daggers  in  his  belt  and  dynamite  in  his  boots  and  today,  this  week, 
we  are  classified  with  the  effete  East,  representing  a  civilization  that  is 
more  or  less  fixed  in  its  notion  and  feels  sometimes  alarmed  when  you 
Western  fellows  start  us  to  think  on  some  modern  economic  problem. 
(Applause.) 

I  have  an  impression  that  God  Almighty  reserved  a  great  section 
of  this  North  American  continent  here  on  the  western  coast  that  it 
might  be  peopled  by  great  men  and  strong  women.  You  could  not 
have  developed  the  infinite  resources  of  this  great  country  except  you 
had  the  peculiar  kind  of  people  fitted  for  that  sort  of  work,  and  you 
have  them  here  in  the  West  and  the  great  Northwest  and  they  are 
carrying  on  that  work,  and  in  carrying  it  on  they  are  forwarding  the 
mighty  purposes  of  modern  civilization  and  the  so-called  goody,  goody 
people  of  the  East,  from  Illinois — I  suppose  that  now  is  the  East — are 
waking  up  to  realize  the  extent  of  the  obligation  they  owe  the  progres- 
sive men  and  the  progressive  women  of  this  Western  country.  Why, 
the  idea  that  a  woman,  our  mother,  our  wife,  our  sister,  was  entitled  to 
enjoy  all  the  rights  that  we  enjoy  is  a  Western  idea.  It  came  out  of  the 
West.  And  after  looking  into  it  somewhat  particularly,  we  are  only 
adopting  it  now  in  spots  here  and  there  in  the  East.  After  awhile  you 
will  succeed  in  educating  us,  (applause)  and  will  elevate  the  standard 
of  this  common  life  of  ours. 

Now  I  have  exhausted  my  limit,  Mr.  Chairman. 

(Chorus  of  "Go  on,  go  on,  go  on.") 

THE  PRESIDENT:   You  may  proceed,  Mr.  Ross. 

MR.  DAVID  ROSS:  What  a  story  the  facts  tell.  In  the  printed 
programme  there  is  an  article  written  by  Sidney  Norman  telling  what 
has  happened  here  in  the  last  comparatively  few  years.  That  story 
will  be  worth  millions  of  dollars  to  the  West  and  to  the  Northwest.  It 
is  going  to  invite  attention  to  the  great  resources  and  to  your  wonderful 
possibilities,  and  I  wasn't  surprised,  because  I  had  met  Mr.  Norman 
before.  The  main  function  of  his  life  is  to  call  attention  to  the  good 
things  and  then  to  bid  the  whole  world  to  come  in  and  help  him  enjoy 
them.  It  is  the  typical  spirit  of  the  West  and  that's  what  makes  it 
absolutely  impossible  to  make  a  full  and  adequate  response  to  any  west- 
ern welcome.  It  is  too  wide;  it  is  too  generous;  it  is  too  compre- 
hensive. Your  mayor  and  your  officers  of  the  city  invite  us  not  only  to 
the  city  of  Spokane  but  to  the  Northwest.  That  is  the  spirit  of  the 
West.  Among  the  figures  referred  to  by  Mr.  Norman  is  the  fact  that 
in  1880  there  were  but  three  hundred  people  in  Spokane  and  in  1910  the 
census  figures  credit  you  with  having  104,000  and  you  have  more  now, 
because  two  years  have  elapsed  since  that  census  was  taken.  In  other 
words,  in  the  thirty-two  years  you  have  multiplied  your  population  four 
hundred  times,  notwithstanding  the  International  law  that  you  cannot 
under  normal  conditions  double  more  than  once  in  twenty-five  years.  If 
you  can  only  maintain  that  ratio  of  population  increase  for  the  next 
thirty-two  years  Wall  Street  will  want  to  borrow  money  from  Spokane. 
And  in  the  meantime  you  will  be  under  the  necessity  of  petitioning  the 
Government  of  the  United  States  to  lease  a  few  extra  valleys  in  which 


28  OFFICIAL    PROCEEDINGS 

to  extend  the  limits  of  your  city,  assuming  of  course  that  we  are  to  go  on 
the  leasing  system. 

I  shall  not  waste  further  time  now.  There  are  others  you  want 
to  hear,  but  I  shall  be  glad  later  to  speak  of  some  of  the  progress  that 
is  being  made  in  important  ways  coming  out  from  the  West, — of  the 
legislation  intended  to  recognize  the  democracy  of  this  people  and  of 
the  regulations  to  which  you  are  all  committed  by  law,  the  evident  pur- 
pose of  which  is  to  distribute  more  equally  the  prosperity  and  the  wealth 
which  the  labors  of  your  men  and  women  have  brought  forth,  and  that 
above  and  beyond  all  you  will  keep  in  your  mind's  eye  forever  the  im- 
portance of  promoting  not  only  the  individual  interests  but  the  common 
welfare  and  I  regard  much  of  your  modern  legislation  in  these  Western 
states  as  headed  directly  that  way  and  that  the  rest  of  the  country 
recognizing  its  debt  now  will  continue  to  honor  that  obligation  by 
imitating  you.  So  far  as  I  am  individually  concerned  I  am  already  a 
convert  to  many  of  the  tenets  to  which  your  Western  civilization  is 
committed  and  I  am  willing  to  do  my  little  part  in  the  little  place  where 
I  live  to  extend  the  benefit  and  the  value  of  that  example.  We  shal] 
long  remember  our  obligation  in  an  economic  way  and  in  other  ways 
to  the  brainy  and  hardy  pioneering  and  progressive  people  of  our 
great  West. 

And  now,  Mr.  President,  just  a  word  again  to  repeat  the  spirit 
with  which  we  have  been  received  by  your  people,  by  the  representative 
of  your  Governor,  by  your  Mayor.  "  I  don't  know,  of  course,  what  the 
local  conditions  are  in  Spokane"  but  if  the  quality  of  the  administration 
of  your  Mayor  is  anywhere  near  a  reflection  of  his  ability  as  a  man  and 
his  eloquence  as  an  orator,  the  power  of  recall  which  you  have  wisely 
incorporated  in  your  local  law  will  never  be  invoked  here  (applause). 
No  need  for  it,  and  though  it  is  well  that  you  should  have  that  check  on 
unworthy  officials  that,  like  many  other  things  was  regarded  as  a  Wild 
West  idea,  but  even  in  that  the  effete  East  is  becoming  reconciled  to  it 
and  in  many  places  we  are  adopting  that  policy  along  with  others  which 
your  genius  and  good  sense  originated. 

Your  committee  on  Entertainment,  headed  by  Mr.  Norman,  have 
provided  a  bill  of  fare  which  most  of  us  will  find  difficult  to  assimilate. 
In  fact,  if  we  maintain  our  relations  with  your  Entertainment  Committee, 
there  will  be  little  time  left  for  our  business  discussions.  I  have  been  in 
a  great  many  places  but  I  never  saw  anything  like  it.  Here  is  a  little 
coupon  book  that  is  practically  a  pass-port  to  everything  in  Spokane 
except  the  city  prison,  including  your  vaults,  your  street  car  lines, 
your  automobiles,  your  clubs,  your  libraries,  your  schools,  your  theaters, 
everything  that  is  intended  to  go  to  and  foster  what  is  best  in  a  man's 
make-up  and  to  make  pleasant  our  brief  stay  in  this  city,  has  been 
provided  for  by  the  committee.  Personally,  speaking  for  myself,  and 
I  think  I  speak  for  all  the  other  delegates,  we  feel  under  a  thousand 
obligations  to  you  and  we  shall  exhaust  ourselves,  if  necessary,  in  the 
attempt  to  participate  in  the  many  good  things  which  you  have  provided 
for  us.  I  thank  you. 

THE  PRESIDENT:  Mr.  Hywel  Davis,  President  of  the  Kentucky 
Coal  Operators'  Association  of  Louisville,  Ky.,  is  next  on  the  program. 
Is  Mr.  Davis  in  the  house?  It  appears  not.  We  will  next  hear  from 
Mr.  W.  B.  Shackelford  of  Missouri. 

MR.  W.  B.  SHACKELFORD,  (Webb  City,  Mo.):  Mr.  Chairman, 
ladies  and  gentlemen:  I  did  not  know  I  was  on  for  a  response  for 
Missouri  until  I  picked  up  the  programme  this  morning.  Now,  there 
came  with  me  two  good  orators  from  our  corner  of  the  state  and  I 
flipped  a  dollar  this  morning  to  see  which  one  of  them  was  to  make 
the  address.  One  of  them  won,  but  he  would  not  accept,  so,  in  behalf 
of  Missouri,  I  want  to  respond  with  our  greetings  to  the  State  of  Wash- 
ington and  the  city  of  Spokane.  I  went  pretty  thoroughly  over  the  city 
yesterday  evening,  studied  out  the  programme  of  arrangements  that  had 
been  made  by  your  live  organizations  for  the  entertainment  of  the 
delegates  while  here,  and  it  looks  to  me  like  they  were  working  in 


t 
AMERICAN    MINING    CONGRESS  29 

harmony  and  had  a  splendid  system  for  everything,  which  reminds  me 
of  a  little  story  that  I  heard  of  a  Jew  pedler.  This  Jew  pedler  started 
out  with  his  pack  on  his  back  and  came  to  a  flat  building  and  he  thought 
perhaps  I  can  sell  some  of  my  merchandise  so  he  goes  around  to  the 
back  door,  knocks  on  the  door  and  says,  "Can  I  show  you — "  Bang 
went  the  door  in  his  face.  He  came  around  to  the  front  door  and  he 
tried  to  show  his  merchandise  there  but  was  kicked  out  of  the  front  door 
and  out  onto  the  front  steps.  He  saw  the  door  open  in  the  hallway  and 
he  thought  he  would  go  up  to  the  third  floor  and  work  down.  A  big 
man  came  to  the  door  and  kicked  him  down  the  steps  and  threw  his 
bag  after  him  into  the  street.  The  pedler  gathered  himself  up  and 
began  to  rub  his  shins  saying,  "My,  what  a  system."  That  is  what  I 
think  of  Spokane.  I  believe  we  are  going  to  have  a  good  time.  We 
are  also  going  to  accomplish  results  in  this  convention.  We  are  from 
Missouri  and  while  we  don't  have  everything  down  there,  like  some 
other  states,  we  have  got  a  pretty  rich  corner  in  it  and  while  perhaps 
we  are  not  doing  so  much  as  some  other  people  in  mining,  there  are  a 
whole  lot  of  us  doing  it  and  our  delegation  is  truly  glad  to  be  present 
here  with  you.  I  thank  you. 

THE  CHAIRMAN:  The  next  on  the  list  is  Honorable  W.  R. 
Allen,  Governor  of  Montana. 

GOVERNOR  W.  R.  ALLEN:  Mr.  Chairman,  ladies  and  gentlemen 
of  the  American  Mining  Congress:  I  indeed  regret  that  it  is  growing  so 
late  and  that  the  limit  has  been  placed  upon  us  so  that  I  cannot  re- 
spond in  an  appropriate  manner  to  the  splendid  words  of  welcome  that 
we  have  heard  this  afternoon.  I  want  to  say  to  you,  Mr.  Chairman,  to 
the  citizens  of  Spokane  and  the  people  of  Washington  that  the  people  of 
Montana  extend  to  you  their  cordial — their  hand  of  friendship  and  fel- 
lowship and  cordially  thank  you  this  afternoon  for  your  splendid  greet- 
ings and  words  of  welcome.  We  are  neighbors  of  yours.  Your  interests 
are  identical  with  our  interests.  Your  people  are  identical  with  our  peo- 
ple. Your  citizens  came  across  the  great  plains  to  settle  up  these  moun- 
tains and  valleys  at  the  same  time  that  our  citizens  came  across  the 
plains  and  I  want  to  say  to  the  gentleman  from  Illinois,  the  reason  why 
we  have  such  a  splendid  citizenship  as  this  is  that  in  1848-52-65,  we 
plucked  the  best  from  the  Eastern  states,  brought  them  across  the  plains 
and  settled  them  upon  the  plains  and  in  these  valleys  and  put  them  at 
work  in  these  mountains  delving  for  the  precious  metal.  We  have 
builded  here  a  splendid  commonwealth.  We  are  pouring  today  into  the 
treasuries  of  the  world  the  wealth  that  is  coming  out  of  these  grand 
old  mountains  and  that  will  continue  to  pour  forth  as  long  as  time 
exists.  Mr.  Chairman,  in  response  to  your  Temporary  Chairman,  I  want 
to  say  to  you  this  afternoon  on  behalf  of  the  people  of  Montana  that 
we  appreciate  the  kindly  words  that  he  said.  I  want  to  assure  him  that 
the  men  who  today  are  working  on  the  dizzy  heights  of  those  tall 
smokestacks  of  the  Washoe  smelter  of  Anaconda,  who  are  delving  deep 
in  the  musty  depths  of  Butte,  who  are  up  on  the  timberline  on  these 
snow  capped  mountains  that  tower  towards  Heaven's  dome,  those  men 
who  are  toiling  in  the  fields,  on  the  mountains,  and  in  the  valleys  appre- 
ciate the  fact  that  you  have  here  a  thriving  and  prosperous  community 
and  that  here  we  can  come  to  you  and  find  solution  and  sympathy  in 
time  of  trouble,  and  in  time  of  peace  and  prosperity  and  plenty  rejoice 
with  you. 

Now,  Mr.  Chairman,  just  call  me  when  my  time  is  up.  I  would 
like  to  talk  to  you  about  legislation;  I  would  like  to  say  to  you  a  great 
deal  on  some  of  the  men  like  Marcus  Daly,  Senator  Clark,  and  score* 
of  other  great  men  and  of  what  they  have  accomplished,  not  only  for 
Montana,  but  for  the  entire  mining  world.  I  wish  I  had  time  this  after- 
noon to  say  something  to  you  about  the  wealth  that  exists  in  those 
mountains  and  hills  of  Montana.  I  wish  I  could  say  to  you  something 
about  the  enterprises  that  have  been  builded  as  a  result  of  the  values 
found  there.  I  wish  I  could  say  something  to  you  about  the  splendid 
resources  of  the  state  of  Montana,  but  time  does  not  permit.  I  wish  I 


30  OFFICIAL    PROCEEDINGS 

could  say  something  to  you  about  the  laws  that  have  been  protecting 
and  governing  the  industry,  and  discuss  those  laws  with  you  that  we 
might  profit  by  your  experience,  but  time  will  not  permit.  I  would  like 
to  say  to  the  gentleman  from  Colorado,  I  believe  that  while  the  people 
of  Montana  may  not  be  able  to  observe  a  donkey  wink  five  miles  away 
we  can  observe  a  hoodwink  five  hundred  miles  away. 

I  want  to  say  to  you  that  we  are  going  to  strengthen  our  laws  in 
that  direction,  and  I  appreciate  the  fact  that  we  have  here  as  repre- 
sentatives from  Montana  some  of  the  nation's  greatest  mining  engi- 
neers and  they  will  have  something  to  say  to  you  before  adjournment 
of  the  Congress,  and  I  hope  that  I  may  be  permitted  at  some  future 
time  to  address  you  when  we  have  more  time,  and  I  thank  you  very 
much  for  these  cordial  words  of  welcome  (applause). 
THE  PRESIDENT:  The  next  will  be  Oklahoma. 
MR.  J.  P.  McNAUGHTON,  (Miami,  Okla.) :  Mr.  Chairman,  ladies 
and  gentlemen,  and  members  of  this  Convention:  I  am  here  represent- 
ing the  State  of  Oklahoma,  which  is  one  of  our  youngest  states. 

Our  delegation  represents  what  is  conceded  to  be  the  greatest 
lead  and  zinc  Mining  District  in  the  United  States.  Our  Oklahoma 
mines  being  a  part  of  the  Joplin  district  and  only  26  miles  southwest. 
The  combined  districts'  output  this  year  will  reach  nearly  eighteen 
millions  of  dollars. 

Mineral  was  discovered  in  our  district  in  1907  while  drilling  for 
water  for  farm  use  four  miles  north  of  Miami.  At  a  depth  of  ninety 
feet  in  soft  ground,  showing  a  face  of  ore  down  to  120  feet,  carrying  20 
per  cent  disseminated  lead  and  zinc  ore.  The  output  of  1907  was  less 
than  one  thousand  dollars.  Since  that  time  there  has  been  25  of  the 
largest  concentrating  plants  erected  with  a  tonnage  of  from  150  to  200 
tons  each. 

After  the  camp  was  thoroughly  started  deeper  drilling  was  done 
and  at  a  depth  of  220  feet  richer  ore  was  encountered  down  to  a  depth 
of  300  feet,  and  the  richness  of  dirt  increased  to  as  high  as  40  per  cent, 
as  it  came  from  the  ground.  The  output  for  1912,  will  reach  nearly  if 
not  quite  one  million  dollars.  Today  this  once  beautiful  prairie  of  only 
a  few  years  back  is  dotted  for  miles  with  mines  and  drills  and  con- 
centrating plants  that  show  to  the  world  that  there  are  live  men  in 
Oklahoma,  and  yet  there  is  plenty  of  room  for  others,  and  all  are 
invited. 

Twelve  miles  east  of  Miami  in  Ottawa  county  is  a  deposit  of  a 
polishing  material  known  as  Tripoli.  Up  to  a  few  years  ago  all  of  the 
Tripoli  that  we  used  in  this  country  was  imported  from  Tripoli,  Egypt. 
These  mines  in  Egypt  became  exhausted  and  now  we  have  the  largest 
body  of  the  same  material  that  is  known  to  exist  at  the  present  time  in 
the  United  States,  and  we  are  exporting  this  material  to  all  foreign 
countries  as  well  as  supplying  the  demand  of  the  United  States.  This  is 
the  greatest  polishing  material  known  and  the  numerous  uses  to  which 
it  is  being  applied  makes  the  demand  greater  than  the  possible  supply  of 
the  manufactured  article.  The  Oklahoma  Tripoli  Company  will  soon 
have  completed  a  mill  of  two  hundred  tons  daily  capacity,  and  this 
company  now  has  orders  booked  ahead  for  several  months  in  advance. 
The  visible  supply  of  Tripoli  amounts  to  more  than  a  millon  tons.  This 
will  be  another  great  industry  added  to  the  wealth  of  our  mines  with 
our  lead,  zinc,  tripoli,  coal,  asphalt,  gas  and  oil,  all  of  which  we  have, 
you  must  concede  that  we  have  all  the  necessary  wealth  to  make  us 
a  little  kingdom  of  our  own.  I  thank  you  (applause). 

MR.  H.  R.  HARRIMAN,  (Seattle,  Wash.):  Mr.  President:  These 
addresses  are  very  interesting  and  very  educating  but  unless  this  is  an 
exception  to  all  previous  sessions,  a  great  many  delegates  have  in  their 
pockets  or  concealed  about  their  persons,  resolutions  bearing  upon  im- 
portant subjects  to  be  considered  by  the  resolutions  committee.  I, 
therefore  move  that  we  adjourn  in  order  that  the  states  may  get  together 
and  appoint  their  members  on  the  resolution  committee  so  that  we  can 
put  them  to  work. 


AMERICAN    MINING    CONGRESS  31 

MR.  A.  M.  WHITE:  I  second  the  motion  to  appoint  a  resolu- 
tions committee  from  the  different  states,  one  man  from  each  state 
represented  in  the  convention. 

THE  PRESIDENT:  You  have  heard  the  motion,  but  before  put- 
ting that  motion  I  am  going  to  ask  Mr.  Denis  to  make  one  announce- 
ment. 

MR.  G.  B.  DENNIS:  At  the  request  of  the  president,  I  wish  to 
state  that  there  will  be  tonight  at  the  Spokane  Club,  a  reception  for 
the  delegates  and  their  ladies  and  friends.  All  of  you  delegates,  ladies 
and  friends  are  invited. 

THE  PRESIDENT:   The  secretary  has  a  statement  to  make. 

SECRETARY  CALLBREATH:  I  only  desire,  Mr.  Chairman,  to 
correct  the  impression  that  the  President's  address  is  to  be  delivered 
here.  This  address  will  be  given  at  the  Spokane  Club  this  evening. 

Upon  motion  duly  made  and  seconded  the  meeting  was  adjourned 
to  meet  at  the  Spokane  Club  at  8  p.  m. 

MONDAY,  NOVEMBER  25,  1912. 
Evening  Session. 

The   evening  session  was  occupied  by   the   annual  address  of  the 

President,  which  will  be  found  at  page  of  this  report,  followed  by 

a  reception  to  the   President  and  officers. 

TUESDAY,  NOVEMBER  26,  1912. 
Morning  Session. 

President  Taylor  called  the  meeting  to  order  at  10  a.  m. 

THE  PRESIDENT:  The  first  thing  on  the  program  this  morning 
is  the  making  up  of  the  committee  on  resolutions,  and  as  the  secretary 
calls  the  name  of  the  state,  each  state  will  announce  the  member  selected 
to  represent  the  state  on  the  resolutions  committee. 

Members  of  the  committee  were  announced  as  follows: 

Resolutions  Committee. 

Alaska J.   L.  Steele. 

California H.    Foster   Bain. 

Canada H.  B.  Brown. 

Colorado D.  W.   Brunton. 

Idaho H.   F.  Samuels. 

Illinois David   Ross. 

Kansas T.    J.    Vest. 

Mexico Lester  R.   Budrow. 

Michigan F.  G.  Goggin. 

Missouri John   M.    Malang. 

Montana W.   R.   Allen. 

Nevada Jules    Labarthe. 

New   Mexico T.   H.   O'Brien. 

New  York John  R.  Burton. 

Ohio C.  S.  Johnson. 

Oklahoma J.  P.  McNaughton. 

Oregon H.   N.    Lawrie. 

South   Dakota Robert  L.   Daugherty. 

Utah Jos.   F.   Merrill. 

Kentucky Hywel   Davies. 

Texas A.    M.   White. 

Virginia Thomas    L.    Watson. 

Washington Maurice   D.   Leehey. 

SECRETARY  CALLBREATH:  The  Resolutions  Committee  will 
meet  immediately  after  the  morning  session  in  the  room  in  the  left  hand 
rear  corner  of  the  building,  for  organization  and  for  the  selection  of 
Chairman  and  Secretary,  and  such  sub-committees  as  it  may  desire  to 


32  OFFICIAL    PROCEEDINGS 

select.  A  stenographer  will  be  in  attendance  to  assist  your  work  and 
any  other  needed  facilities  will  be  furnished  on  request. 

Concerning  the  introduction  of  resolutions,  allow  me  to  say  that 
any  member  of  the  convention  is  entitled  to  introduce  resolutions.  Our 
by-laws  require  all  resolutions  to  be  read  by  the  Secretary  and  referred  to 
the  Resolutions  Committee  without  debate.  Upon  the  report  of  the  reso- 
lutions committee  they  will  be  acted  upon  by  the  convention.  Every 
member  of  this  convention  who  believes  that  some  subject  should  re- 
ceive the  attention  of  this  convention  is  urgently  requested  to  prepare 
in  a  concise  form  the  matter  which  he  desires  presented  to  the  conven- 
tion for  consideration. 

THE  PRESIDENT:  We  will  resume  the  responses  by  the  states 
to  the  addresses  of  welcome  which  were  begun  yesterday,  and  I  would 
just  like  to  emphasize  the  necessity  that  the  talks  be  brief,  not  more 
than  five  minutes.  We  have  with  us  Mr.  John  R.  Burton,  who  will  re- 
spond for  New  York.  (Applause.) 

MR.  JOHN  R.  BURTON:  Mr.  Chairman,  ladies  and  gentlemen: 
It  may  seem  queer  to  you  that  a  man  from  New  York  should  come 
out  here  and  talk  to  you  about  mining.  We  have  no  mines  in  New  York 
State  of  any  particular  importance,  but  we  furnish  the  capital  for  the 
development  of  mines  of  all  description.  In  furnishing  this  capital  it  is 
also  necessary  for  us  to  pay  strict  attention  to  the  nature  of  the  prop- 
erties presented  to  us  for  our  consideration. 

I,  personally,  am  not  interested  in  mining,  and  never  have  been  the 
holder  of  any  stock  in  mining  corporations.  The  newspaper  business 
has  been  my  field,  and  a  few  years  ago  a  paper  was  started  by  the 
newspaper  men  of  New  York  which  I  financed,  and  the  policy  of  this 
paper  was  to  secure  the  elimination  of  the  dishonest,  or  get-rich-quick 
broker.  This  paper  is  called  "The  New  York  Curb,"  and  those  of  you 
who  are  familiar  with  the  fight  that  we  have  been  making  against  the 
crooks  who  offer  fictitious  securities,  know  that  we  have  been  very  suc- 
cessful and  have  secured  the  conviction  of  a  number  of  the  dishonest 
element.  But  for  the  benefit  of  those  who  have  been  unfortunate 
enough  as  not  to  have  read  our  paper,  I  will  say  that  we  have  today 
practically  cleansed  the  entire  financial  district  of  the  larger  cities  from 
the  gentry  who  ply  their  trade  at  the  expense  of  the  widows  and  orphans 
who  should  not  invest  money  in  enterprises  offered  by  these  people. 
Today  we  have  in  the  public  prints  the  story  showing  us  that  the  govern- 
ment is  now  prosecuting  some  of  the  various  men  whom  we  warned 
our  readers  about. 

I  am  out  here  to  see  what  is  going  on  and  to  see  and  watch  the 
deliberations  of  this  Congress  particularly  the  interest  and  the  methods 
that  the  American  Mining  Congress  will  adopt  for  the  safety  of  the 
investors  in  mining  securities. 

If  you  will  go  back  about  three  years,  you  will  remember  that  the 
whole  country  was  infested  with  bucket  shop  and  get-rich-quick  artists, 
whose  specialty  was  the  discovering  of  a  mine  over  night.  The  next 
step  would  be  tc  incorporate  a  company  and  flood  the  country  with 
literature  about  the  wonderful  prospects  and  tell  in  glowing  language  of 
the  profits  to  be  made  on  a  property  that  never  existed.  It  was  only 
recently  that  statistics  of  the  Post  Office  Department  showed  that  over 
three  million  per  annum  has  been  taken  put  of  the  pockets  of  the  poorer 
class  of  people  by  these  crooks,  and  it  is  certainly  up  to  the  American 
Mining  Congress  to  take  a  decided  stand,  and  the  members  of  the  Con- 
gress should  support  the  officers  in  order  to  bring  back  repute  and 
money  for  development  work. 

It  is  a  shame  that  a  man  with  money  cannot  take  care  of  it  himself, 
and  has  to  have  the  protection  of  some  one  else  to  keep  him  from  giving 
his  money  to  the  crooked  promoters.  But  it  is  nevertheless  a  fact  that 
we  have  today  information  in  our  hands  that  some  of  our  very  success- 
ful business  men  are  among  the  biggest  contributers  to  these  crooked 
promoters,  actually  believing  that  if  they  will  place  their  money  with 
them,  that  they  will  get  back  a  fortune  in  a  short  while. 


AMERICAN    MINING    CONGRESS  33 

Gentlemen:  I  assure  you  it  is  a  pleasure  to  be  with  you,  and  I 
want  to  pledge  to  you  the  support  of  "The  New  York  Curb,"  and  say 
in  conclusion  that  we  will  do  everything  in  our  power  in  the  elimination 
of  dishonest  promoters  and  hope  to  have  your  help. 

THE  PRESIDENT:  I  am  going  to  call  on  Dr.  H.  Foster  Bain 
to  respond  on  behalf  of  California. 

MR.  H.  FOSTER  BAIN,  (San  Francisco,  California):  Our  of- 
ficial representative,  Mr.  Storms,  the  State  Mineralogist,  seems  not  to 
be  present.  This  should  really  fall  upon  him.  I  don't  know  that  there 
is  any  particular  thing  I  can  say,  but  my  position  is  something  like 
that  of  a  minister  in  Colorado  a  few  years  ago  in  the  time  of  the  free 
silver  excitement.  You  may  perhaps  remember  a  preacher  who  was 
traveling  in  a  strange  town  and  was  called  in  to  officiate  at  a  burial. 
He  didn't  know  anything  about  the  man  that  was  killed.  He  had  never 
seen  him  and  he  didn't  have  an  opportunity  to  ask  anybody  about  his 
past  habits  so  he  knew  nothing  to  say  about  him.  So  he  opened  with  a 
few  general  remarks  and  then  he  paused  and  said  perhaps  some  friends 
of  the  deceased  might  be  able  to  say  something  about  the  gentleman 
and  his  career.  Nobody  said  anything  and  there  was  a  long  pause,  and 
finally  one  man  in  the  rear  got  up  and  said,  "Well,  gentlemen,  if  there 
is  nobody  who  wants  to  say  anything  about  the  deceased,  I  would  like 
to  take  a  few  moments  to  say  something  about  that  burning  question, 
the  crime  of  1873,  the  ratio  of  16  to  1."  If  there  isn't  anything  else  for 
a  Californian  to  talk  about,  he  talks  about  the  Panama-Pacific  Exposi- 
tion of  1915. 

Wherever  I  go  people  ask  questions  about  what  we  are  doing  about 
the  exposition,  what  its  plans  are,  and  how  far  along  it  is?  In  answer 
I  may  say  that  at  the  head  of  the  exposition  is  an  engineer  who  has 
earned  large  bonuses  in  private  business  by  getting  his  work  done  on 
time  and  ahead  of  time.  In  one  particular  case  he  had  charge  of  the 
construction  of  a  power  plant  in  Southern  California,  and  his  firm  re- 
ceived over  four  hundred  thousand  dollars  for  exceeding  the  guaran- 
tee,— doing  better  work  than  was  expected,  and  getting  it  done  ahead  of 
time.  We  may  safely  assume  that  Mr.  Moore  and  his  associates  will 
get  the  exposition  done  on  time.  They  have  already  begun  the  work 
on  the  grounds.  They  are  dredging  and  preparing  the  docks,  building 
the  service  building,  and  are  fencing  the  grounds.  They  have  made  over 
three  hundred  sketches  for  the  various  buildings.  They  have  their 
work  in  such  shape  that  if  they  should  start  to  build  their  buildings 
now  they  would  have  them  done  eighteen  months  before  the  exposition, 
with  the  result  of  facing  the  fire  risk  and  the  necessity  of  keeping  a 
watchman  there  all  the  time.  For  these  reasons  it  doesn't  seem  prac- 
tical to  start  much  building  now. 

There  are  forty-eight  states  and  nations  that  have  accepted  the  in- 
vitation to  exhibit  at  the  exposition.  A  very  large  success,  so  far  as 
exhibitions  are  concerned,  is  now  assured.  A  number  of  the  depart- 
ments have  been  organized,  but  there  are  some  that  have  not  been,  and 
the  fact  that  interests  us  especially  is  that  the  mines  and  the  mining 
department  have  not  been  organized  and  no  person  has  been  appointed 
as  commissioner.  California  miners  have  been  trying  to  bring  pressure 
to  bear  upon  the  exposition  authorities  to  get  this  department  organized 
for  the  reason  that  it  takes  a  long  time  to  get  mineral  exhibits  ready. 
It  is  a  hard  thing  to  get  the  mining  men  to  exhibit,  since  they  have  no 
pecuniary  interest  in  doing  so.  Machinery  men  are  anxious  to  get  their 
exhibits  in  because  they  make  money  by  doing  so,  but  it  won't  par- 
ticularly help  a  copper  mine  or  a  gold  mine  to  exhibit.  There  is  no 
special  reason  why  a  miner  should  make  an  exhibit  at  the  exposition 
except  from  a  broad  educational  point  of  view.  It  is  necessary  to  appeal 
to  the  highest  motives  of  the  mining  men  in  order  to  get  them  to 
exhibit.  Dr.  J.  A.  Holmes,  a  man  who  has  had  charge  of  mines  and 
mining  at  the  St.  Louis  exposition,  told  me  that  the  most  successful 
exhibits  come  from  the  companies  who  made  the  least  amount  of  money 
by  making  them,  and  I  think  that  is  generally  true. 


34  OFFICIAL    PROCEEDINGS 

One  of  the  plans  for  the  Panama  Exposition  is  'a  great  engineering 
congress.  It  is  proposed  that  the  various  engineering  societies  meet 
in  San  Francisco  in  1915.  An  effort  will  be  made  to  get  the  engineers 
of  the  world  there  at  one  time.  The  exposition  authorities  have  asked 
me  to  request  the  American  Mining  Congress  to  keep  their  program 
clear  with  a  view  to  meeting  in  San  Francisco  at  that  time.  We  would 
like  to  have  the  date  1915  reserved. 

So  far  as  I  have  seen  the  plans  for  the  exposition  grounds,  I  can 
say  without  any  reservation  that  they  will  give  us  one  of  the  most  beau- 
tiful pictures  that  has  ever  been  given. 

THE  CHAIRMAN:  The  time  is  up  unless  the  Congress  wishes 
to  extend  the  time.  (Applause.)  I  might  say  that  a  motion  is  always 
in  order  to  extend  the  time  of  the  delegate. 

MR.  ROBERT  NEILL  (Florence,  Idaho):  I  make  a  motion  that 
Mr.  Bain's  time  be  extended  for  five  minutes  in  order  to  enable  him  to 
continue  his  talk. 

Motion  was  duly  seconded  and  carried. 

H.  FOSTER  BAIN:  Mr.  Chairman,  there  are  only  a  few  words 
more  that  I  might  say,  and  that  is  with  regard  to  the  grouping  of  the 
exposition  buildings.  This  will  be  unique,  in  that  instead  of  series  of 
buildings  along  avenues,  there  will  be  a  series  of  courts,  following  the 
old  Californian  mission  style  of  building  around  a  court,  so  that  the 
designer  of  the  buildings  instead  of  building  four  walls  fronting  out- 
ward is  building  four  walls  fronting  inward.  Now  aside  from  the  beauty 
of  the  conception  it  has  the  advantage  that  it  will  prevent  any  long 
avenues  down  which  the  winds  can  sweep.  In  California  we  unfor- 
tunately have  pretty  strong  winds.  We  say  unfortunately  because  it  is 
unfortunate  for  the  tourist;  it  fills  his  eyes  with  dust  and  his  nose  as 
well,  but  they  are  of  great  benefit  to  California  and  the  Pacific  Coast, 
as  they  are  the  trade  winds,  that  give  us  our  pleasant  climate  and  that 
have  helped  us  with  our  commerce  and  have  brought  a  large  amount 
of  business  to  California. 

Mr.  President,  I  only  want  to  say  that  we  shall  be  delighted  to  see 
you  in  San  Francisco  in  1915,  if  we  don't  see  you  sooner. 

THE  PRESIDENT:  The  next  person  that  we  will  call  on  is  Mr. 
Burton  A.  Wright,  representing  Ohio. 

MR.  WRIGHT:  Mr.  President  and  ladies  and  gentlemen:  My 
presence  here  as  a  delegate  from  Ohio  is,  I  believe,  due  to  a  recent 
visit  to  my  old  home  in  Columbus.  For  the  past  two  years  my  work 
has  been  in  the  Northwest  and  I  have  made  Seattle  my  home.  When  I 
came  here  yesterday  I  felt  that  I  was  rather  up  against  it  as  I  was  the 
only  one  from  Ohio,  but  this  morning  I  am  glad  to  note  that  there  is 
someone  else  here  who  is  a  resident  of  Ohio  and  no  doubt  more  closely 
in  touch  with  mining  affairs  in  that  state.  It  gives  me  great  pleasure 
at  this  my  first  meeting  of  the  American  Mining  Congress  and  to  re- 
spond in  behalf  of  the  great  State  of  Ohio. 

THE  PRESIDENT:  South  Dakota  will  be  represented  by  Mr. 
Robert  L.  Daugherty,  State  Inspector  of  Mines. 

MR.  DAUGHERTY:  Mr.  President,  ladies,  gentlemen  and  dele- 
gates to  the  American  Mining  Congress:  It  gives  me  great  pleasure 
to  respond  in  behalf  of  the  great  State  of  South  Dakota,  and  I  only 
wish  I  could  do  the  State  justice.  You  probably  have  already  heard  of 
the  discoveries  of  gold  in  the  Black  Hills  by  the  Sioux  Indians  and 
Father  DeSmeith.  The  Black  Hills  then  were  a  part  of  two  Indian 
reservations.  Mining  started  in  reality  in  1876,  or  soon  after  the  United 
States  Government  took  the  Black  Hills  away  from  the  Indians  and 
turned  it  over  to  the  citizens  of  the  United  States.  Mose  Manual 
discovered  the  first  quartz  mine  in  the  Black  Hills.  Since  that  time 
the  mining  industry  in  the  Black  Hills  has  grown  from  infancy  until 
at  the  present  day  we  have  a  tonnage  of  over  two  million  tons  annually 
with  a  gold  output  of  over  eight  million  dollars  and  a  silver  output  of 
something  over  two  hundred  and  twenty-five  thousand  dollars  a  year 
with  many  other  minerals  of  value. 


AMERICAN    MINING    CONGRESS  35 

The  state  can't  boast  of  the  largest  output  of  gold  or  silver,  but 
we  can  boast  of  having  one  of  the  greatest  gold  mines  on  the  face  of 
the  globe.  It  treats  over  one  and  a  half  million  tons  of  ore  annually. 
In  the  last  thirty-four  years  it  has  gradually  increased  from  a  small 
plant  until  now  it  has  one  thousand  stamps  dropping  steadily,  all  driven 
by  electricity.  The  Black  Hills  average  generation  of  electrical  power 
in  the  different  streams  amounts  to  eleven  thousand  horsepower,  and 
we  have  waterflow  enough  in  those  streams  to  generate  five  times  that 
horsepower  if  it  was  all  utilized. 

The  country  is  not  well  developed,  because  we  have  no  bonanzas 
and  we  are  not  troubled  with  wildcat  investment  schemes.  We  have 
large  deposits  of  low-grade  ore,  which,  with  our  modern  methods  of 
mining  and  milling,  can  be  treated  with  profit.  1  think  we  are  treating 
the  lowest-grade  ore  in  the  United  States,  with  one  exception,  and  it 
is  the  greatest  dividend  payer  we  have  in  the  state.  Probably  some  of 
the  mining  men  here  will  be  surprised  that  the  assayed  value  of  this 
ore  is  two  dollars  and  sixteen  cents  per  ton. 

The  lay  of  the  land  is  ideal  for  working  these  low-grade  ores 
cheaply.  We  have  an  undeveloped  country,  and  the  reasons  that  I  and 
all  mining  men  give  is  on  account  of  the  ore  being  of  low  grade  and 
capital  seeking  an  investment  usually  wants  something  that  it  can  get 
returns  out  of  in  fifteen  minutes  or  less. 

I  thank  you,  Mr.  President  and  gentlemen,  for  your  attention. 
(Applause.) 

THE  PRESIDENT:  Oregon  will  be  represented  by  Professor 
H.  M.  Parks. 

PROFESSOR  H.  M.  PARKS:  Mr.  Chairman  and  gentlemen: 
I  understood  that  another  gentleman  from  our  State  was  to  have 
this  honor.  However,  as  he  is  not  present  I  will  say  in  behalf  of 
the  Oregon  delegation  that  I  am  glad  to  thank  the  citizens  of  Spokane 
for  the  spirit  of  welcome  which  we  received  from  this  platform  yes- 
terday, and  to  say  also  that  there  is  beginning  to  be  an  organized  move- 
ment in  the  State  of  Oregon  for  the  development,  for  the  real  develop- 
ment of  the  mineral  resources  of  that  state.  I  will  just  take  a  moment 
to  call  your  attention  to  it. 

In  the  rapid  development  of  the  Northwest,  Oregon,  like  other 
states,  has  turned  its  attention  largely  to  agriculture  at  the  present 
time,  and  through  our  agricultural  colleges  and  other  sources  many 
hundreds  of  thousands  of  dollars  have  been  spent  annually  in  the  in- 
vestigation of  agricultural  resources.  There  is  of  late  a  feeling  among 
mining  men  of  the  State  of  Oregon  that  the  mining  industry,  the  min- 
ing and  geological  industry — I  will  put  it  that  way  a  little  more  par- 
ticularly— should  be  included  in  that  "back  to  the  soil"  movement,  so 
called.  In  other  words,  the  "back  to  the  soil"  movement  in  Oregon,  and 
this  Northwest  country,  should  reach  back  to  production,  back  to 
basic  production,  and  that  the  mining  and  geological  industries  should 
be  included  in  that  movement.  Therefore,  I  say  there  is  an  organized 
movement  being  started  among  the  mining  men  of  Oregon  today  to 
include  the  mineral  industry  in  this  "back  to  the  soil"  movement.  We, 
as  people  of  Oregon  solicit  your  support  in  this  movement. 

I  am  very  glad  to  be  here  at  this  Convention,  and  I  thank  you. 
(Applause.) 

THE  CHAIRMAN:  Utah  will  be  represented  by  Mr.  George  H. 
Bern. 

MR.  DERN,  Salt  Lake  City:  I  am  very  glad  to  have  this  some- 
what belated  opportunity  to  say  on  behalf  of  the  Utah  delegation  that 
we  are  grateful  to  our  neighbors  of  Spokane  for  the  kindly  reception 
they  have  accorded  to  us.  We  appreciate  the  cordial  words  of  wel- 
come that  were  spoken  yesterday  afternoon  and  the  entertainment  that 
has  been  provided  for  us  during  our  stay  in  the  city.  I  was  impressed 
as  I  listened  to  the  things  that  were  said  about  Spokane  yesterday 
afternoon  with  the  similarity  between  Spokane  and  Salt  Lake.  It 
to  me  that  the  two  cities  resemble  each  other  in  many  respect 


36  OFFICIAL    PROCEEDINGS 

They  are  about  equal  in  population.  Spokane  is  the  headquarters  of 
several  important  mining  districts;  so  is  Salt  Lake.  The  city  of  Spokane 
was  very  largely  built  up  with  the  money  that  came  from  the  mines; 
so  was  Salt  Lake.  Spokane  has  an  important  agricultural  territory 
tributary  to  it;  so  has  Salt  Lake.  I  understand  that  Spokane  is  spoken 
of  as  the  "Capital  of  the  Inland  Empire;"  we  in  Utah  speak  of  Salt  Lake 
as  the  "Center  of  the  Solid  West." 

There  was  something  said  about  centers  here  yesterday  afternoon. 
Now,  as  Mr.  Ross  said,  a  great  deal  depends  upon  your  viewpoint, 
and  perhaps  I  ought  to  explain  our  viewpoint  about  the  center  of 
things.  We  feel — and  we  think  we  are  justified  by  the  map — that  Salt 
Lake  is  at  the  center  of  the  West.  We  are  the  hub.  Everything 
radiates  from  Salt  Lake.  At  the  end  of  one  spoke  of  the  wheel  is — 

A  VOICE:     The  rim. 

MR.  BERN:  Is  Spokane.  Butte  is  at  the  end  of  another  spoke; 
Denver  at  the  end  of  another;  Los  Angeles,  San  Francisco  and  Port- 
land each  at  the  end  of  another.  Salt  Lake  City  is  the  center,  or  the 
hub,  from  which  they  all  radiate.  That  is  the  Salt  Lake  viewpoint. 
You  will  observe  that  we  are  more  modest  than  Boston.  Boston 
claims  to  be  the  hub  of  the  universe;  we  only  claim  to  be  the  hub  of 
the  western  half  of  the  United  States.  Of  course,  this  situation  pre- 
supposes a  good  deal  of  importance  on  the  part  of  the  City  of  Salt 
Lake.  Possibly  the  importance  of  Salt  Lake  is  not  perfectly  apparent 
to  all  of  you. 

For  instance,  this  roll  call  of  the  states  is  made  in  alphabetical 
order,  consequently  Utah  comes  very  near  to  the  tail  end  of  the  pro- 
cession. I  daresay  that  this  method  was  adopted  as  a  measure  of 
safety  for  the  President  of  the  Congress,  because  if  he  had  to  call 
upon  the  states  in  the  order  of  their  rank  as  mining  states,  he  might 
put  himself  in  danger  of  personal  violence  at  the  hands  of  jealous  dele- 
gates from  rival  states.  I  am  sure  if  that  plan  had  been  followed,  Utah 
would  have  been  called  on  early  yesterday  afternoon  instead  of  being 
left  over  until  this  morning. 

I  might  mention  another  point  that  has  perhaps  made  a  good 
many  people  in  the  United  States  thing  Utah  is  rather  insignificant,  and 
that  is  the  number  of  electoral  votes  she  casts  in  a  presidential  election. 
I  must  admit  that  in  this  respect  we  rank  rather  low;  but  I  am  sure 
that  we  have  not  been  any  less  conspicuous  for  that  reason  this  year. 
I  want  to  say  that  our  production  of  electoral  votes  is  no  criterion 
whatever  of  our  mineral  production.  We  may  be  close  to  the  tail  end 
of  the  roll  call,  but  when  it  comes  to  mining  we  feel  that  this  is  but 
another  example  of  the  old  adage  that  the  last  shall  be  first.  And 
although  our  political  rank  may  be  low,  that  doesn't  prevent  us  from 
looming  up  in  the  front  rank  as  a  producer  of  minerals. 

I  cannot  claim  that  Utah  is  the  very  first  among  the  states  in 
mineral  production,  but  we  confidently  hope  that  we  shall  be,  sooner 
or  later,  provided  it  doesn't  become  too  fashionable  to  take  care  of 
posterity,  and  let  the  present  generation  shift  for  itself  the  best  it  can. 
Men  used  to  say,  "Why  should  I  do  anything  for  posterity?  Posterity 
has  never  done  anything  for  me."  Now,  we  are  beginning  to  reverse 
the  proposition  to  some  extent;  but  it  is  to  be  hoped  that  we  will  not 
let  our  altruistic  motives  carry  us  to  such  extremes  as  to  starve  our- 
selves in  order  to  give  to  generations  yet  unborn  opportunities  which 
may  be  so  out  of  date  by  that  time  that  they  will  have  no  use  for 
them.  (Applause.) 

THE  PRESIDENT:  Mr.  Thomas  L.  Watson,  State  Geologist, 
will  respond  in  behalf  of  Virginia. 

MR.  WATSON:  I  only  arrived  in  Spokane  this  morning;  hardly 
a  few  moments  ago  was  I  aware  that  I  would  be  called  upon  to  make 
the  response  of  welcome  on  the  part  of  Virginia.  I  assure  you  it  is 
a  very  great  pleasure  to  me  to  attend  this  the  first  session  of  the 
American  Mining  Congress  on  my  part,  and  I  bring  the  greetings  to 
you  from  the  Old  Dominion.  I  thank  you.  (Applause.) 


AMERICAN    MINING    CONGRESS  37 

THE  PRESIDENT:  Washington  is  to  be  represented  by  Colo- 
nel W.  T.  Perkins,  of  Seattle. 

COLONEL  PERKINS:  Mr.  President  and  Members  of  the 
American  Mining  Congress,  both  men  and  women:  I  supposed  when 
we  adjourned  yesterday  that  we  had  finished  these  responses  and  that 
we  would  be  noted  in  the  morning  papers  as  having  also  spoke,  some- 
thing like  the  politician  who  also  ran,  if  he  occupied  the  tail  end  of 
the  string  of  votes.  Yesterday  I  recalled  during  the  afternoon  session 
the  story  as  was  aptly  told  by  the  mayor  in  his  words  of  welcome  to 
us  about  the  poor  boy  who  had  been  kicked  by  the  mule,  and  there 
"wasn't  no  remains."  And  when  we  got  through  with  the  roll  call  and 
through  with  Oklahoma  I  thought  it  particularly  applied  to  the  audi- 
ence— there  wasn't  no  remains.  And  I  think  the  coroner  possibly  ought 
to  be  congratulated  this  morning  on  having  got  together  so  much  of  the 
remains  as  we  have  with  us  this  morning. 

In  saying  a  word  on  behalf  of  Washington  in  response  to  the 
address  of  welcome,  I  feel  that  I  occupy  as  its  Vice-president  somewhat 
of  a  dual  capacity;  or,  in  other  words,  I  speak  both  as  a  host  and  a 

§uest.  As  a  guest,  I  appreciate  the  words  of  welcome  given  to  the 
tate  by  Spokane  expressed  through  the  President  of  the  Chamber  of 
Commerce  in  behalf  of  the  Governor  of  this  State  to  you,  gentlemen, 
from  all  the  States  in  the  Union.  On  behalf  of  the  Washington  dele- 
gates as  a  host  I  wish  to  say  Amen.  We  as  miners  and  interested  in  the 
mining  interests  of  the  country,  welcome  you  to  this  great  state  of 
Washington  and  the  Northwest.  As  I  glance  at  the  vacant  chairs,  which 
were  yesterday  occupied  by  the  Mayor,  President  of  the  Chamber  of 
Commerce  and  the  other  representatives  of  the  good  city  of  Spokane, 
in  behalf  of  the  miners  of  the  State  of  Washington  outside  of  Spokane 
who  are  here  as  guests  of  this  city,  I  wish  to  thank  them  for  their 
cordial  words  of  greeting  which  expressed  so  much  the  typical  western 
greeting,  and  I  know  that  we  all  accept  it  in  the  generous  spirit  in 
which  it  is  proffered,  and  the  magnificent  entertainment  which  our 
coupon  book  shows  they  have  planned  for  us.  It  already  has  had  an 
auspicious  beginning.  I  know  that  we  shall  appreciate  it  from  the 
beginning  to  the  end.  I  know  that  I  voice  the  sentiments  of  all  those 
representatives  from  the  western  part  of  the  State  beyond  the  Cascade 
Mountains  coming  from  the  seaport  cities  of  Puget  Sound.  We  expect 
with  the  aid  of  this  great  inland  city  of  Spokane  to  help  develop  the 
commerce  of  Alaska  and  the  Pacific  Coast.  With  the  opening  of  the 
Panama  Canal — to  be  celebrated  by  the  great  exposition  about  which 
we  have  just  heard  from  the  gentleman  from  California — this  wonderful 
development  is  going  to  surpass  any  development  of  the  commerce  of 
the  Atlantic.  I  know  that  I  appreciate  equally  well  on  behalf  of  the 
miners  of  this  Great  Inland  Empire  their  sentiments,  and  of  the  sur- 
rounding mining  camps;  and  therefore  on  behalf  of  all  the  mining 
interests  of  this  great  State  of  Washington,  we  sincerely  thank  you. 
gentlemen  of  Spokane,  for  the  entertainments  you  are  giving  us. 

THE  CHAIRMAN:  That  finishes  that  part  of  the  program,  and 
the  Secretary  will  make  some  announcements  in  connection  with  the 
program  this  morning. 

SECRETARY  CALLBREATH:  For  the  first  time  in  a  conven- 
tion of  the  American  Mining  Congress  we  are  short  on  set  addresses 
and  long  prepared  papers.  A  number  of  prominent  men  who  were 
expected  to  be  here,  from  different  causes,  are  not  able  to  be 
present.  And  so  it  enables  us  now  without  intending  it  to 
meet  a  criticism  which  has  often  been  made  that  the  conventions 
of  the  Mining  Congress  were  occupied  with  too  many  set  papers  and 
to  follow  the  suggestion  that  it  would  be  very  much  better  if  the  dis- 
cussion could  be  carried  on  by  the  members  present  who  understand 
the  several  subjects,  and  in  that  way  we  would  come  nearer  to  getting 
a  real  expression  of  opinion  regarding  the  subjects  under  discussion. 
I  am  glad  of  an  opportunity  to  try  out  the  plan  and  to  give  consideration 
to  questions  which  I  think  every  mining  man  feels  an  interest  in.  We 


38  OFFICIAL    PROCEEDINGS 

propose  this  morning  to  submit  for  discussion  from  the  floor  the 
question,  "How  can  the  small  investor  in  mining  stocks  be  best  pro- 
tected?" It  is  desired  that  everybody  present  shall  present  his  views  on 
this  subject. 

We  had  expected  Mr.  W.  H.  Storms,  State  Mineralogist  of  Cali- 
fornia, to  lead  the  discussion.  I  understand  that  Mr.  Storms  has  pre- 
pared a  paper  on  this  subject,  but  will  not  be  able  to  present  it  per- 
sonally. If  you  will  pardon  me,  and  if  the  President  will  permit,  I  will 
be  glad  to  make  a  few  introductory  statements  to  show  what  has  been 
done  in  connection  with  this  question  by  the  American  Mining  Congress. 

The  first  effort  culminated  in  the  approval  by  the  Denver  Con- 
vention of  the  recommendation  of  its  committee  favoring  what  came  to 
be  known  as  the  Pardee  Law.  The  Pardee  Law  was  supposed  to  be  an 
improvement  on  the  California  Law,  being  the  same  in  principle,  but 
more  comprehensive  in  its  scope.  In  other  words,  the  California  Law 
applied  only  to  corporations,  while  the  so-called  Pardee  Law  applied  to 
corporations,  joint  stock  companies,  individuals  and  partnerships.  The 
purpose  of  that  law  was  to  make  any  misrepresentation  about  the  stock 
of  a  mine  which  was  offered  for  sale  a  misdemeanor.  Many  people 
believe  that  the  present  law  covers  that  point.  It  does  not.  The  law 
of  false  pretense  requires  that  four  conditions  shall  prevail  before  a 
conviction  may  be  had:  First,  that  a  misstatement  was  made;  second, 
that  the  falsity  of  that  statement  was  known  by  the  party  when  making 
it;  third,  that  somebody  must  believe  that  statement,  and  fourth,  that, 
acting  upon  that  belief,  he  must  do  some  act  to  his  detriment,  must  part 
with  his  money.  Now,  it  is  difficult  to  find  all  of  those  four  conditions 
in  conjunction,  except  in  very  rare  instances.  Another  difficulty  has 
been  that  the  man  who  has  parted  with  his  money  in  a  foolish  way,  as 
the  man  does  when  he  buys  stock  in  a  thing  that  he  knows  nothing 
about,  is  a  little  ashamed  of  his  foolishness,  and  will  bear  his  loss  in 
silence  rather  than  admit  his  foolish  act.  We  have  hoped  by  this  law 
to  make  it  a  little  more  risky  for  a  man  to  misrepresent  about  his 
property.  The  Pardee  Law,  with  slight  amendments,  has  been  adopted 
in  a  considerable  number  of  states,  the  last  being  Massachusetts. 

It  was  the  intention  of  the  American  Mining  Congress  to  urge 
the  enactment  of  this  law  in  all  of  the  States,  and  particularly  those 
states  where  mining  stocks  are  offered  for  sale,  and  then  to  create  an 
agency  through  which  we  can  assist  the  state  authorities  by  special 
legal  assistance  in  the  prosecution  of  those  who  violate  this  law.  The 
man  who  is  approached  with  a  dishonest  proposition  and  finds  it  out 
before  he  is  caught  will  tell  you  about  it,  and  pride  himself  upon  his 
superior  acumen  in  ascertaining  the  fact  that  somebody  has  tried  to 
mulct  him;  while  the  man  who  has  parted  with  his  money  in  a  fake 
scheme  will  probably  not  tell  you  because  of  his  desire  to  avoid  notoriety 
and  also  because  he  couldn't  get  his  money  back. 

This  was  the  first  step.  It  has  been  realized  by  the  officers  of  the 
Mining  Congress  that  this  is  one  of  the  most  vital  questions  to  the  West, 
in  that  our  western  hills  are  filled  with  prospective  mines  needing 
money  for  development.  Prospects  are  the  raw  material  out  of  which 
we  manufacture  mines.  We  need  money  in  that  manufacturing  industry. 
There  is  no  industry  to  which  the  investor  can  turn  with  more  hope  of 
success  than  to  the  manufacture  of  mines,  not  only  for  his  own  benefit, 
not  only  to  the  benefit  of  the  Western  States,  but  for  the  benefit  of 
the  nation  as  a  whole.  And  therefore  we  need  to  protect  the  mining 
investor. 

The  eastern  investor  in  mining  stocks  today  is  a  gambler.  The 
eastern  investor  wants  to  be  something  else  than  a  gambler,  and  we 
want  him  to  be.  We  can  make  him  such  by  giving  him  the  advantage 
of  what  we  know  about  mining  development.  It  is  said  that  mining  is 
a  gamble,  and  I  believe,  gentlemen  of  this  Convention,  that  it  is  a 
statement  which  we  should  combat  with  the  very  best  ability  that  is 
in  us.  Life  insurance  is  as  safe  a  business  as  there  is  in  the  world 
today.  It  is  considered  absolutely  safe,  and  yet  the  insurance  of  one 


AMERICAN    MINING    CONGRESS  39 

man's  life  is  the  most  risky  thing  that  can  be  undertaken.  The  de- 
velopment of  one  prospect  is  a  risky  proposition;  the  development  of 
fifty  well-chosen  prospects,  honestly  and  intelligently,  will  assure  the 
production  of  a  mine  the  value  of  which  will  cover  the  investment  in  all 
of  the  others.  In  other  words,  if  through  co-operation  or  corporation 
we  may  apply  to  the  development  of  our  mines  the  same  principle 
which  is  applied  to  life  insurance,  we  may  not  only  make  mining  a 
legitimate  business,  but  we  will  protect  the  eastern  investor.  We  may 
secure  for  the  West  that  great  development  which  we  need.  But  in 
doing  this  we  must  be  careful.  We  have  a  very  delicate  proposition  to 
handle,  because  of  the  fact  that  the  prospector  has  a  prospective  value 
in  his  claim  above  its  apparent  cash  value.  If  he  were  forced  to  sell  it, 
he  might  sell  it  to  you  for  five  hundred  dollars  or  five  thousand  dollars, 
but  it  might  have  a  value  of  five  million,  or  less. 

A  VOICE:     Or  more. 

SECRETARY  CALLBREATH:  Now,  he  is  entitled  when  he 
puts  that  prospect  into  the  corporation  to  receive-  more  than  the  five 
hundred  dollars  which  might  be  the  most  he  could  sell  it  for  in  cash 
today.  And  therefore,  if  we  adopt  a  plan  like  the  law  in  the  State  of 
Iowa,  that  no  corporation  stock  shall  be  issued  as  paid  up  except  it  be 
fully  paid  up  in  cash  or  its  equivalent,  we  would  put  an  embargo  upon 
the  prospector  turning  his  claim  into  the  corporation,  if  he  could  only 
receive  in  the  stock  of  that  corporation  the  five  hundred  dollars  which 
might  be  considered  the  actual  cash  value  of  his  prospect  as  it  is  today. 
Now,  we  must  frame  some  plan  by  which  the  prospector  who  puts  his 
property  into  a  corporation  may  receive  a  proper  share  of  the  pros- 
pective value  which  may  thereafter  be  developed.  He  should  have 
no  right  to  take  profit  from  the  sale  of  prospect  stocks.  The  investor 
has  a  right  to  know  that  the  greater  part  of  his  money  is  honestly  and 
intelligently  spent  in  development  work. 

If  the  prospect  shall  be  made  into  a  mine,  the  investor  and  pros- 
pector should  each  have  a  just  share  of  its  ownership  and  profit.  The 
prospector  or  promoter  has  no  right  to  realize  on  the  millions  which  he 
may  honestly  believe  his  property  is  worth  until  that  value  is  taken 
from  the  mine. 

Under  the  law  of  many  states,  both  east  and  west,  a  corporation  is 
authorized  to  issue  ten  million  dollars  in  paid-up  capital  stock,  based 
on  a  postage  stamp  in  value.  This  is  the  other  extreme,  and  under  this 
plan  our  states  practically  give  sanction  to  what  is  a  palpable  fraud. 

In  approaching  this  subject,  I  wish  you  gentlemen  would  devise 
some  plan  by  which  we  may  protect  the  investor  in  mining  stocks;  first, 
because  we  want  to  protect  him,  and  second,  because  we  want  him  to 
help  in  the  development  of  the  mining  industry  in  our  states. 

We  can't  hope  to  get  him  to  invest  his  money  in  our  mines  unless 
he  has  a  fair  run  for  his  money.  He  is  willing  to  lose  if  he  loses  fairly. 
He  is  not  satisfied  when  the  money  which  he  subscribes  for  mine  de- 
velopment is  used  for  paying  other  expenses  and  absorbed  by  the  pro- 
moter himself.  I  have  been  told  by  promoters  that  it  costs  seventy  per 
cent  to  raise  money  for  the  development  of  a  mine.  This  ought  not 
to  be  and  it  will  not  be  when  we  have  given  a  reasonable  guarantee 
to  the  investor  that  his  money  is  to  be  spent  in  development  work. 
With  that  guarantee  I  believe  that  our  now  idle  prospects  would  be 
under  development  in  every  part  in  the  West,  and  more  money  would 
be  available  for  that  purpose  than  we  would  be  able  to  furnish  the 
scientific  and  technical  and  engineering  brains  to  invest  properly.  I 
need  to  beg  your  pardon  for  interpolating  these  remarks,  but  it  seems 
to  me  that  a  statement  of  what  the  American  Mining  Congress  has  done 
should  be  presented  to  you.  I  hope  you  will  take  this  matter  up  vigor- 
ously, and  that  as  a  result  we  may  create  a  committee  which  will 
develop  a  comprehensive  plan  which  will  put  us  in  fair  favor  with  the 
eastern  investor,  which  will  show  that  the  West  is  anxious  to  treat 
him  right  and  give  him  an  opportunity  to  participate  in  its  wonderful 
resources.  I  thank  you. 


40  OFFICIAL    PROCEEDINGS 

THE  PRESIDENT:  We  would  like  to  have  a  full  discussion  of 
this  subject,  and  as  the  responses  are  made  to  it,  I  wish  the  party 
speaking  would  give  his  name  and  State,  so  that  the  reporter  can  get 
the  record  in  proper  shape. 

GOVERNOR  W.  R.  ALLEN,  Butte,  Montana:  This  matter  is 
one  that  I  wanted  to  talk  upon,  and  I  am  very  glad  that  it  has  been 
mentioned  this  morning.  I  have  given  this  subject  some  thought  and 
consideration.  In  the  not  distant  past  I  had  visions  of  being  in  a  posi- 
tion where  I  might  be  able  to  assist  in  the  passage  of  a  law  similar  to 
the  one  mentioned  by  our  Secretary,  for  the  protection  of  not  only  the 
investors  but  also  the  mine  owners  and  prospectors.  I  consider  this 
question  of  vital  importance  and  I  wish  to  state  briefly  my  idea  of  the 
law  as  it  should  be  framed. 

I  think  we  can  solve  the  question  quickly  and  effectively;  I  think 
we  can,  in  a  measure,  curb  the  large  trusts  we  hear  so  much  about  today; 
1  believe  we  can  begin  at  the  bottom  of  this  evil  and  by  proper  regula- 
tion and  supervision  prevent  the  formation  of  these  large  aggregations 
of  capital;  of  watered  stock  that  is  sold  to  the  unsuspecting  public.  I 
fully  appreciate  that  we  must  do  everything  possible  to  assist  the 
prospector,  who  takes  the  worst  of  it,  at  the  best;  who  labors  in  the 
mountains  year  after  year,  depriving  himself  of  the  comforts  and 
pleasures  of  life;  blazing  the  trail  of  progress  and  development  and,  in 
most  cases,  receives  but  little  reward;  these  pioneers  are  benefiting 
humanity — laying  the  foundation  for  mammoth  industries.  Some  have 
grown  wealthy,  but  few  in  proportion  to  the  total;  these  men  we  must 
protect;  we  must  give  them  every  advantage.  Most  prospectors  are 
honest  men,  most  of  them  are  a  little  visionary  and  overly  optimistic; 
hope  and  optimism  are  needed  when  he  plunges  into  the  wilderness  on 
scant  rations,  drives  his  tunnel  or  sinks  his  shaft  without  any  guaranty 
of  ultimate  success. 

The  complaint  generally  heard  from  the  investor  is  not  about  the 
prospector  but  about  the  promoter.  The  promoter  can  secure  an  option 
on  an  unpatented  piece  of  property  or  make  a  location  for  the  purpose, 
incorporate  a  company,  sell  stock  and  expend  nothing  in  the  develop- 
ment, even  though  the  property  has  some  merit.  The  investor  should  feel 
that  he  is  dealing  more  directly  with  the  prospector;  the  plans  of  the 
promoter  should  be  laid  bare  to  the  investor  and,  in  my  opinion,  this  can 
only  be  done  by  having  state  supervision.  My  idea  would  be  to  frame  a 
law  along  these  lines:  When  a  company  is  organized  for  the  purpose 
of  selling  stock  it  should  be  compelled  to  file  statements  with  the  Com- 
missioner of  Corporations,  or  some  other  department  of  state,  before 
license  to  sell  stock  be  granted.  The  information  on  file  should  state 
whether  the  property  was  patented  under  option  or  the  work  was  being 
done  upon  located  ground;  amount  of  capital  stock;  what  they  proposed 
to  sell  the  stock  for;  what  the  money  was  to  be  used  for;  what  percentage 
was  to  be  paid  in  officers'  salaries,  etc.,  and  that  semi-annual  statements 
be  furnished  to  the  state  department;  compelling  the  company  to  invest 
at  least  seventy-five  per  cent  of  the  proceeds  received  from  the  sale 
of  stock  in  substantial  improvements  or  assets;  tell  the  truth  and  the 
whole  truth. 

Most  mining  properties,  especially  those  that  are  in  process  of 
development,  contain  a  large  element  of  chance;  there  are  many  in- 
vestors willing  to  take  this  chance  if  they  know  their  money  is  going 
to  be  honestly  expended  in  the  development  of  the  property;  the  returns 
in  many  cases  are  large,  which  justifies  investments  of  this  character; 
but  the  business  has  suffered  severely  during  the  past  few  years  on 
account  of  wild  cat  promoters  who  had  no  interest  whatever,  other 
than  to  secure  the  money  from  the  sale  of  stock,  never  intending  to 
develop  any  properties.  The  mining  industry  today  throughout  the 
Northwest  offers  larger  returns  upon  the  investment  than  any  other 
industry;  there  are  thousands  of  prospects  that  can  be  developed  into 
dividend-paying  mines  by  the  investment  of  small  sums  of  money.  We 
must  put  the  business  upon  a  more  substantial  basis  than  it  has  been 


AMERICAN    MINING    CONGRESS  41 

in  the  past;  we  must  say  to  the  investor  in  mining  properties:  "While 
we  cannot  guarantee  that  the  proposition  offered  will  develop  into  a 
dividend-paying  mine,  we  can  say  that  the  money  received  from  the 
sale  of  stock  will  be  expended  in  developing  the  property,  less  a  rea- 
sonable commission."  Should  such  a  law  as  this  be  enacted  by  the 
mining  states,  every  corporation  intending  to  sell  stock  would  place  on 
file  with  the  proper  officers  all  the  information  it  could  secure,  such  as 
reports  from  mining  engineers,  geologists,  etc.  Under  this  plan,  should 
I  come  to  New  York  and  offer  stock  for  sale  a  wire  to  the  proper  state 
officials  would  bring  forth  the  information  that  I  was  duly  licensed  to 
sell  stock  in  a  mining  company  and  that  I  had  on  file,  under  oath, 
certain  statements. 

In  my  opinion,  Montana,  at  the  coming  session  of  the  Legislature, 
will  pass  some  such  law,  and  I  want  to  see  every  western  mining  state 
do  the  same  thing  and  let  us  protect  our  honest  prospectors  from  the 
operations  of  the  dishonest  promoters  and  let  us  place  the  mining  in- 
dustry upon  the  high  plane  it  deserves. 

MR.  H.  N.  LAWRIE,  Portland,  Oregon:  I  would  like  to  state 
that  what  Mr.  Allen  has  said  has  more  than  an  influence  on  the  pro- 
tection of  the  prospector  and  the  investor.  The  information  so  placed 
on  record  in  the  office  of  the  Secretary  of  State  is  immediately  avail- 
able for  the  purpose  of  the  State  Mining  Bureau  or  Geological  Survey 
in  more  efficiently  co-ordinating  their  forces  in  the  field  and  giving  to 
the  public  a  more  concise  and  accurate  statement  of  what  prospects 
exist  for  the  purpose  of  capital  investment.  In  the  State  of  Oregon 
two  years  ago  a  bill  was  passed  creating  a  Mining  Bureau.  During 
these  past  two  years  there  had  been  numerous  calls  for  information 
concerning  the  prospects  of  the  State  of  Oregon.  Knowing  as  the 
capitalist  of  the  East  does  that  there  is  very  little  finished  development 
in  the  State  of  Oregon,  they  would  like  to  become  informed  more  cer- 
tainly and  accurately  as  to  the  prospects  available  for  develop- 
ment. And  in  this  way  this  information  could  serve  a  triple  purpose. 
It  would  not  only  protect  the  prospector  and  investor,  but  it  would  also 
enlarge  the  field  for  the  prospector,  meeting  the  capitalist  in  a  fair  and 
honest  way  and  insures  development  more  rapidly  and  at  a  less  cost 
and  at  a  less  sacrifice  than  he  now  has  to  undergo.  (Applause.) 

THE   PRESIDENT:     Mr.  Johnson,  you  are  next. 

MR.  C.  S.  JOHNSON,  Ohio:  I  just  wanted  to  ask  Mr.  Allen  a 
question. 

THE  PRESIDENT:     If  his  permission  is  granted. 

MR.  ALLEN:     Certainly. 

MR.  JOHNSON:  Whether  that  could  be  done  by  the  National 
laws  or  by  the  State  laws. 

GOVERNOR  ALLEN:  I  had  in  mind  the  doing  of  it  by  the 
State  laws,  with  one  point,  however,  that  I  wanted  to  bring  out,  and  that 
is  that  before  any  stock  could  be  sold  in  any  corporation  within  the 
state  or  outside  of  the  state,  that  a  certificate  should  be  issued  by  this 
Commissioner  of  Corporations  or  the  Secretary  of  State  giving  per- 
mission to  sell  this  stock. 

MR.  JOHNSON:     Has  that  the  sanction  of  this  Congress? 

MR.  ALLEN:     I   think  that  is  going  pretty  far. 

THE  PRESIDENT:  These  matters  will  be  referred  to  the  Reso- 
lutions Committee  and  they  will  act  upon  it  and  bring  it  before  the 
Congress  for  action.  That  is  the  usual  procedure. 

F.  H.  STANARD,  Washington:  The  important  thing  is  to  find 
who  the  facts  were  obtained  from  and  why.  If  a  channel  is  cut 
across  a  vein  and  the  samples  analyzed  the  investor  wants  to  know 
whether  that  analysis  is  made  by  a  responsible  assayer.  I  think  that 
point  would  come  before  the  Department  of  Mines  or  someone  who  is 
there  to  submit  it  to.  In  the  territory  in  which  I  am  there  is  no  one 
in  authority  to  refer  to  when  we  say  that  there  are  veins  of  commercial 
importance  in  that  country.  There  are  some  of  us  that  know  it,  but 
the  general  public  does  not,  and  they  don't  know  whether  we  are  an 


42  OFFICIAL    PROCEEDINGS 

authority  in  that  particular  thing.  It  is  a  question  of  the  authority 
after  the  situation  as  it  exists  is  presented  to  the  man  who  wishes  to 
invest  in  it. 

THE  PRESIDENT:  These  are  all  good  thoughts.  Let  us  have 
some  more. 

MR.  ROBERT  NEILL,  Florence,  Idaho:  I  think  that  Governor 
Allen's  remarks  would  sufficiently  cover  that  ground.  The  department 
would  go  to  the  very  fullest  extent  endeavoring  to  find  the  facts  with 
reference  to  the  mineral  belt  or  prospect,  and  consequently  with  the 
law  enacted  as  Governor  Allen  has  suggested  those  things  will  come 
out  and  those  points  will  be  guarded.  My  statement  or  your  statement 
or  any  other  man's  statement,  without  it  is  corroborated  by  others  who 
are  not  interested  in  the  property,  would  not  be  sufficient  information. 
It  would  not  be  a  sufficient  safeguard  to  the  investor.  I  have  been  in 
the  mines  for  forty  years  and  I  have,  unfortunately  for  the  people  that 
I  have  represented,  been  in  the  Legislatures  of  two  States,  one  State  in 
both  branches  of  the  Legislature,  and  Mr.  Allen's  statement  here  with 
reference  to  that  is  the  most  clean-cut  proposition  that  I  have  ever 
heard,  in  any  Legislature  or  before  any  Mining  Congress.  I  believe  he 
is  on  the  right  track. 

THE  PRESIDENT:  We  will  be  obliged  to  postpone  this  discus- 
sion until  this  afternoon,  as  you  all  know  we  have  an  invitation  to  the 
Chamber  of  Commerce. 

On  motion  duly  made  and  seconded,  meeting  adjourned  to  the 
Chamber  of  Commerce  for  luncheon. 

TUESDAY,    NOVEMBER    26,    1912. 
Afternoon  Session. 

President  Taylor  called  the  meeting  to  order  at  2  o'clock. 

THE  PRESIDENT:  The  Secretary  will  read  the  resolutions  that 
are  on  the  desk  at  the  present  time. 

SECRETARY  CALLBREATH:  May  I  first  read  telegrams  which 
have  just  been  received  from  Mr.  John  Hayes  Hammond  and  Mr.  E. 
A.  Montgomery? 

The    Secretary   read: 

Via  Goldfield,  Nev. — Skidoo,  California,  November  25. 
J.   F.   CALLBREATH,   Secretary,  American   Mining  Congress. 
Spokane,  Wash. 

Accept  congratulations  and  best  wishes  on  success  of  Convention 
of  American  Mining  Congress,  also  my  apology  for  not  being  present, 
as  I  intended  and  would  have  liked  to  be,  but  prevented  on  account  of 
illness  in  my  family.  E.  A.  MONTGOMERY. 

Gloucester,  Mass.,  November  26,  1912. 
S.  A.  TAYLOR,   President,  American  Mining  Congress, 
Spokane,  Wash. 

Regret  sincerely  impossible  for  me  be  present  and  meet  my  friends 
of  Congress  in  Spokane.  Hope  you  will  have  pleasant  and  successful 
meeting.  When  I  can  be  of  assistance  to  the  Congress  please  com- 
mand me.  JOHN  HAYS  HAMMOND. 

The  Secretary  read  resolutions  numbers  1,  2,  3,  4,  5,  6,  7  and  8, 
as  follows: 

Resolution  No.   1,  Introduced  by  A.  M.  White,  Texas. 

Whereas,  The  most  important  function  of  the  Department  of  the 
Interior  is  that  which  has  to  do  with  the  administration  and  control  of 
the  Public  Lands;  and 

Whereas,  The  greater  part  of  the  Public  Lands  are  situated  within 
the  arid  land  and  mining  States  where  two  distinct  systems  of  law  pre- 
vail which  do  not  prevail  elsewhere,  viz.,  the  law  governing  the  appro- 
priation of  water  and  the  law  of  extralateral  rights;  and 

Whereas,  An  intelligent  administration  of  the  public  domain  within 
such  States  can  best  be  given  by  one  having  a  knowledge  of  the  con- 


AMERICAN    MINING    CONGRESS  43 

ditioris  which  made  necessary  the  adoption  of  these  separate  systems 
of  law;  Now,  therefore,  be  it 

Resolved:  That  the  President-elect  of  the  United  States,  Hon- 
orable Woodrow  Wilson,  be  earnestly  requested  and  urged  to  select  for 
his  Cabinet,  as  Secretary  of  the  Interior,  a  resident  of  the  arid  land 
States,  who,  by  actual  experience,  is  familiar  with  western  conditions. 
Resolution  No.  2,  Introduced  by  W.  R.  Allen,  Montana. 

Whereas,  The  natural  resources  of  the  United  States  are  in  large 
measure  found  in  the  western  or  what  are  commonly  termed  the  public 
land  States;  and 

Whereas,  The  greater  portion  of  the  business  of  the  Department 
of  the  Interior  of  the  Federal  Government  has  to  do  with  matters  of 
peculiar  moment  to  the  States  of  the  West;  and 

Whereas,  By  reason  of  this  fact  the  people  of  the  West  are  vitally 
concerned  in  the  administration  of  the  affairs  of  this  Department  of  the 
Government;  now,  therefore,  be  it 

Resolved,  By  the  American  Mining  Congress,  in  annual  session 
assembled  in  the  City  of  Spokane,  State  of  Washington,  That  the  admin- 
istration of  the  affairs  of  the  Department  of  the  Interior  should  be  in 
the  hands  of  a  man  who  comes  out  of  the  West  and  who  by  reason  of 
his  intimate  knowledge  of  the  matters  affecting  this  great  mining 
section,  is  able  to  make  his  administration  of  the  greatest  value  to  the 
people  of  the  whole  country. 

Resolved,  further,  That  it  is  the  sense  of  this  Congress  that  the 
President-elect,  the  Honorable  Woodrow  Wilson,  should  select  a 
Western  man  as  Secretary  of  the  Interior,  and  he  is  hereby  respectfully 
requested  to  make  such  selection  in  forming  his  cabinet  for  the  coming 
four  years. 

Resolution    No.    3,    Introduced    by    Advisory    Committee    on    Mineral 

Statistics. 

Whereas,  It  appears  that  for  want  of  an  appropriation  covering  the 
cost  of  the  work,  the  Bureau  of  the  Census  is  making  no  substantial 
headway  in  compiling  and  publishing  the  data  on  mines  and  quarries 
gathered  during  the  year  1910;  and 

Whereas,  These  statistics  have  an  important  bearing  on  questions 
relating  to  the  mineral  lands  of  the  public  domain,  and  on  all  legislation 
relating  to  mines  and  metals; 

Therefore,  be  it  resolved,  by  the  American  Mining  Congress,  that 
an  appeal  be  made  to  the  Congress  of  the  United  States  for  such  appro- 
priation as  will  be  adequate  for  the  immediate  compilation  and  publica- 
tion by  the  Bureau  of  the  Census  of  the  data  now  at  hand  relating  to 
mines  and  quarries. 

Resolution  No.  4,  Introduced  by  A.  M.  White,  Texas. 

Whereas,  It  is  believed  that  the  public  interest  will  be  served  by 
ottering  special  inducements  to  the  prospector  and  the  developer  of 
mining  prospects  to  the  end  that  new  mines  may  be  opened;  and 

Whereas,  It  is  believed  that  in  all  cases  where  active  development 
work  is  in  progress  that  unproductive  mining  property  should  not  be 
burdened  with  taxation  in  addition  to  the  burden  of  risk  incident  to  de- 
velopment work  and  that  every  possible  inducement  should  be  offered 
to  stimulate  such  effort  as  will  create  property  able  to  bear  the  burden 
of  taxation;  now,  therefore,  be  it 

Resolved:  That  a  committee  on  Mine  Taxation  be  appointed  for 
the  purpose  of  framing  a  law  designed  to  relieve  unproductive  mining 
property  from  the  burdens  of  taxation  during  the  period  of  active  de- 
velopment. 

Resolution  No.  5,  Introduced  by  Butte  Section  of  The  American  Mining 

Congress. 

Whereas,  Throughout  the  West,  and  more  particularly  in  Montana, 
where  most  of  the  mining  sections  are  covered  by  United  States  forest 


44  OFFICIAL    PROCEEDINGS 

reserves,  from  which  a  large  revenue  is  derived  yearly  by  the  govern- 
ment, a  large  number  of  the  most  valuable  mining  properties  and  pros- 
pects are  inaccessible  and  will  remain  so  until  roads  can  be  constructed 
to  them;  and 

Whereas,  The  miner  and  prospector  is  compelled  to  expend  $100 
upon  each  claim  in  annual  assessment  work  and  to  pay  to  the  govern- 
ment the  sum  of  $5  per  acre  when  patent  is  secured;  and 

Whereas,  Each  prospector  and  miner  becomes  a  guard  for  the 
protection  against  forest  fires  and  renders  great  assistance  to  forestry 
officials  in  preventing  and  extinguishing  forest  fires,  and  further,  through 
the  energy  of  the  prospectors  and  miners  the  mining  districts  are  de- 
veloped, thereby  increasing  the  value  of  all  timber  contiguous  to  such 
districts,  in  addition  to  assisting  in  the  development  of  the  country  in 
general;  and 

Whereas,  The  prospector  has  always  been  and  always  will  be  the 
pioneer  in  discovering  and  developing  the  mining  districts,  and,  as  a 
general  rule,  they  are  men  of  small  means,  unable  to  build  or  maintain 
roads  to  properly  exploit  their  properties  or  ship  their  ores,  thereby 
becoming  absolutely  dependent  upon  those  of  larger  means  who  can 
build  said  roads.  These  conditions  have  retarded  development  and  mili- 
tated against  the  worthy  prospector;  therefore,  be  it 

Resolved:  That  it  is  the  sense  of  the  American  Mining  Congress, 
unanimously  expressed,  that  this  condition  be  brought  to  the  attention 
of  our  representatives  in  Congress  that  some  measure  of  relief  may 
be  afforded  these  advance  agents  of  civilization  by  providing  for  the 
construction  of  roads  in  isolated  mining  districts  located  within  forest 
reserves,  and  that  the  United  States  Forestry  Service,  upon  proper  show- 
ing, be  required  to  assist  in  constructing  and  maintaining  said  roads. 

Resolution  No.  6,  Introduced  by  Butte  Section  of  The  American  Mining 

Congress. 

Whereas,  Throughout  Montana  prosperity  abounds  on  every  hand, 
and  the  mining  industry  primarily  is  the  source  of  development  of  the 
State,  and  the  discovery  of  mineral  brought  the  railroads,  which,  in  turn, 
assisted  the  farmer  and  stockman,  the  mining  industry,  through  the 
Butte  section  of  the  Montana  Chapter  of  the  American  Mining  Congress, 
extends  greetings  to  the  other  industries  of  the  State. 

We  have  enjoyed  such  wonderful  growth  and  prosperity  during 
the  past  few  years,  more  especially  in  farm  development,  that  it  is  the 
intention  of  the  mining  industry  to  assist  in  the  development  of  the 
State  along  all  lines  to  the  end  that  Montana  may  become  a  "Greater 
Montana"  through  her  allied  industries. 

With  the  discovery  and  development  of  many  new  mining  fields 
and  the  unbounded  faith  of  thousands  of  prospectors  now  toiling  in 
the  hills;  with  copper  selling  at  upward  of  17  cents  a  pound  and  all  other 
metals  bringing  good  prices;  with  the  discovery  of  many  rare  and  val- 
uable minerals  and  with  the  development  of  fields,  range,  forests  and 
streams,  we  feel  that  Montana  is  taking  her  legitimate  place  as  one  of 
the  richest  and  greatest  states  in  the  Union,  and  the  Butte  section  of 
the  Montana  Chapter  of  the  American  Mining  Congress  in  session 
convened  extends  greetings  to  the  people  of  this  State  and  to  the  people 
of  the  great  Northwest.  Be  it 

Resolved:  That  it  is  the  sense  of  this  meeting  that  every  effort  be 
extended  toward  further  cementing  the  relationship  existing  between 
the  mining  industry  and  other  industries  in  the  West. 

Resolution  No.  7,  Introduced  by  Butte  Section  of  the  American  Mining 

Congress. 

Whereas,  A  great  injustice  has  frequently  been  worked  upon  the 
legitimate  prospector  and  mine  owner  by  fakers  and  wildcatters,  and 


AMERICAN    MINING    CONGRESS  45 

Whereas,  A  number  of  States  are  now  considering  the  advisability 
of  placing  upon  their  statutes  a  law  governing  and  controlling  the  sale 
of  stocks  and  bonds  within  said  States,  and 

Whereas,  If  a  just,  equitable  and  comprehensive  law  can  be  adopted 
in  the  various  States,  especially  the  mining  States,  that  will  safeguard 
the  interests  of  the  legitimate  promoter,  mine  owner  and  investor,  we 
feel  that  it  would  tend  to  place  the  exploitation  of  the  legitimate  mining 
enterprises  upon  a  more  substantial  basis  and  higher  plane.  The  State 
of  Montana  alone  has  thousands  of  prospects  that  can  be  developed  into 
profitable  mining  enterprises  if  sufficient  capital  can  be  secured.  The 
necessary  capital  can  be  secured  as  soon  as  the  investor  can  be  assured 
that  the  enterprise  is  legitimate  and  worthy.  Therefore,  be  it 

Resolved,  That  the  Butte  Section  of  the  Montana  Chapter  of  the 
American  Mining  Congress  recommends  unanimously  that  the  various 
States  coming  under  the  jurisdiction  of  the  American  Mining  Congress 
be  urged  that  the  next  session  of  their  legislative  assemblies  enact  such 
a  law. 

Resolution  No.  8,  Introduced  by  Mark  Bartlett  et  Al. 

Whereas,  In  consideration  of  the  fact  that  much  of  the  mineral  land 
of  the  United  States  is  prevented  of  its  full  development  by  the  short- 
sighted policy  of  the  owners  of  the  land,  and  inasmuch  as  a  proper 
remuneration  for  the  knowledge  and  energy  of  the  mining  profession  is 
not  now  conserved  by  the  present  mining  laws  of  the  United  States,  and 

Whereas,  The  mineral  wealth  of  a  nation  is  the  natural  possession 
of  the  whole  people  of  a  State,  and  the  development  of  the  mineral  lands 
of  the  United  States  to  their  fullest  economic  extent  is  necessary  for  the 
welfare  of  the  people  and  the  material  progress  of  the  nation:  Now, 
therefore,  be  it 

Resolved,  by  the  American  Mining  Congress,  at  this,  its  Fifteenth 
Session,  that  it  approves  of  the  enactment  of  the  following  sections  into 
a  law  for  the  direction  and  control  of  the  development  of  the  mineral 
lands  of  the  United  States,  and  that  the  legal  committee  of  this  Congress 
be  instructed  to  use  its  utmost  endeavors  in  securing  the  passage,  with 
the  least  delay  possible,  of  the  said  law,  within  the  various  States  of  the 
Union: 

1.  A  mineral  claimant  may  institute  proceedings  in  the  Land  De- 
partment to  determine  the  character  of  any  tract  of  land,  the  title  to 
which  is  in  the  possession  of  an  individual,  company  or  corporation,  but, 
in  order  to  succeed,  he  must  satisfy  the  Department  that  the  land  in 
question  contains  minerals  in  sufficient  quantities  to  warrant  a  prudent 
man  in  spending  his  time  and  money  in  the  development  thereof. 

2.  Should  the  decision  of  the  Department  be  in  favor  of  the  con- 
tention of  the  said  mineral  claimant,  the  said  claimant  shall  thereafter  be 
entitled  to  make  entry  thereon,  according  to  the  following  conditions: 

A.  He  shall  pay  to  the  owner  of  the  said  property,  as  liquidated 
damages,  such  sum  as  will  compensate  the  said  owner  for  the  appropria- 
tion of  real  property,  made  by  reason  of  the  establishment  of  the  said 
mineral  claim,  and  that  the  said  damages  shall  be  assessed,  according  to 
the  provisions  of  the  State  Law  of  Eminent  Domain  where  the  land  is 
situated. 

B.  The  said  mineral  claim  shall  thereafter  be  perfected  according 
to  the  Federal  laws  relating  to  the  establishment  of  mineral  claims  where 
such  location  is  made  upon  the  public  lands  of  the  United  States. 

THE  PRESIDENT:  These  are  referred  to  Resolutions  Committee 
without  discussion  at  this  time. 

MR.  CLARENCE  RAE.  Dixon,  Montana:  Here  is  a  resolution 
that  should  be  adopted  by  the  Committee  or  that  should  be  read  before 
the  Congress  now. 

Secretary  Callbreath  then  read  motion  or  resolution  offered  by  Mr. 
Clarence  Rae. 


46  OFFICIAL    PROCEEDINGS 

THE  PRESIDENT:  Will  you  please  take  this  and  put  it  in  the 
form  of  a  resolution,  and  let  it  go  to  the  Resolutions  Committee? 

MR.  CLARENCE  RAE:  That  was  my  idea.  It  was  requested  to 
be  read  before  the  Resolutions  Committee.  It  is  in  session  now  and  it 
was  supposed  to  be  read  at  this  meeting,  at  the  opening,  so  they  could 
form  the  resolution. 

SECRETARY  CALLBREATH:  This  refers  to  the  Resolutions 
Committee,  but  it  will  not  be  a  resolution  because  it  is  not  in  proper  form. 

MR.  CLARENCE  RAE:  It  is  not  a  resolution,  not  in  its  present 
form,  because  it  is  made  up  by  a  prospector,  and  I  have  no  doubt  it  is 
not  in  the  right  form.  I  wish  to  be  recognized  as  a  Montana  delegate, 
as  a  prospector  for  nineteen  years  in  Montana. 

SECRETARY  CALLBREATH:  Let  me  help  you  get  it  in  the 
right  shape. 

MR.  CLARENCE  RAE:     That  is  the  idea.    I  thank  you  for  that. 

THE  PRESIDENT:  We  will  now  take  up  the  discussion  of  the 
morning  where  we  left  off.  The  question  is,  How  shall  the  mining  in- 
vestor be  protected?  That  is  in  substance  the  question  before  the 
assembly,  and  we  will  be  glad  if  every  person  here  will  make  brief 
speeches  on  this  subject. 

MR.  HENRY  S.  VOLKMAR,  Seattle:  There  probably  will  be  a 
number  of  remarks  yet  to  be  made  upon  the  question  that  was  under  dis- 
cussion prior  to  the  noon  adjournment.  I  think  we  all  agree  that  Gov- 
ernor Allen  covered  the  ground  very  nicely,  and  quite  generally,  and  one 
of  the  resolutions  just  offered  here  goes  into  the  question.  In  order  to 
put  something  definite  before  this  session  I  desire  to  offer  a  motion 
which  I  will  state  in  a  moment.  It  is  simply  to  cover  this  idea  of  pro- 
tecting the  legitimate  prospector  and  mining  operator  in  his  work  as 
against  the  fakes  and  the  frauds  that  are  scattered  all  over  the  country. 
We  know  that  in  order  to  develop  a  mining  property  that  it  is  necessary 
to  raise  money  largely  by  stock  selling.  We  know  that  if  we  go  back 
into  the  Eastern  country  to  attempt  to  sell  stock  that  we  are  immediately 
confronted  at  every  turn  with  people  who  tell  you  that  they  have  been 
robbed  and  faked  and  swindled;  to  them  not  only  do  "all  coons  look 
alike"  but  all  mining  propositions  look  alike.  It  is  impossible  for  them  to 
differentiate  between  the  honest  and  the  fake.  I  have  been  talking  during 
the  noon  hour  with  a  few  of  the  delegates,  and  I  had  just  a  rough  idea  in 
mind  that  if  some  plan  could  be  devised  whereby  all  mining  propositions 
would  be  required  by  law  to  be  reported  to  some  central  State  authority, 
like  the  Secretary  of  State,  or  a  Commissioner  of  Mines,  where  a  full 
statement  of  all  the  facts  could  be  recorded,  where,  for  instance,  the 
reports  of  one  or  two  recognized  reputable  mining  engineers  should  be 
made  upon  that  property  and  filed  with  the  state  officer,  so  that  if  you  or 
I  go  back  to  the  Eastern  country  to  present  the  merits  of  our  proposition 
and  we  are  asked  to  explain  what  we  have,  in  order  to  prove  that  we 
have  a  legitimate  proposition,  we  can  refer  them,  by  wire  if  necessary,  to 
the  state  authority  for  information  as  to  the  recorded  facts  of  our 
proposition. 

Now,  Mr.  Chairman,  I  desire  to  offer  this  motion:  That  a  commit- 
tee of  five  representing  the  states  of  Montana,  Idaho,  Washington, 
California,  and  Oregon  be  appointed  and  that  Lieutenant  Governor  W. 
R.  Allen  of  Montana  shall  be  a  member  and  chairman  of  that  committee 
to  frame  a  law  covering  this  whole  subject.  The  legislatures  of  the  re- 
spective states  will  soon  be  assembling,  and  it  seems  to  me  that  if  we  had 
this  law  formulated  by  such  a  committee,  and  reported  back  to  us,  that 
we  in  our  respective  states  could  get  busy  immediately  before  the  coming 
sessions  of  the  legislatures  and  get  to  work  on  a  general  law  covering 
this  whole  subject.  Probably  there  will  be  others  to  speak  upon  this 
subject  with  better  ideas  than  have  come  to  me,  but  in  order  to  get  some- 
thing, Mr.  President,  before  this  Congress  I  offer  a  motion  to  appoint 
that  committee. 


AMERICAN    MINING    CONGRESS  47 

MR.  ROBERT  NEILL:     I  second  that  motion. 

MR.  H.  R.  HARRIMAN:  I  will  suggest  that  we  make  it  six  and 
add  Alaska. 

MR.  HENRY  S.  VOLKMAR:     Accepted. 

MR.  ROBERT  NEILL:     I  very  gladly  accept  your  proposition: 

THE  PRESIDENT:  I  have  no  objection  to  accepting  your 
motion,  but  the  usual  form  is  to  put  it  in  a  resolution.  That  will  apply  to 
the  general  form  of  doing  business  of  the  Congress. 

MR.  VOLKMAR:  Acting  upon  that,  I  will  confer  with  some  of 
the  delegates. 

MR.  ROBERT  NEILL:  I  suggest  that  all  the  mining  states  be 
upon  that  committee. 

MR.  HENRY  S.  VOLKMAR:     All  right. 

MR.  I.  F.  DAVIS,  Kellogg,  Idaho:  Don't  you  think  it  will  be 
better  to  have  a  smaller  number  on  the  committee?  If  the  committee 
gets  too  large  it  will  be  cumbersome.  If  it  has  a  few  members  it  could 
do  more  than  a  large  membership,  say  three,  possibly  five,  as  the  gentle- 
man who  first  introduced  the  motion  suggested. 

MR.  VOLKMAR:  That  is  the  very  thought  I  had  in  mind.  A 
large  committee  is  cumbersome  and  harder  to  get  together,  and  a  smaller 
committee  makes  a  better  working  committee,  and  if  we  had  the  smaller 
committee,  say  six,  together  with  Alaska,  I  think  we  can  do  better  work. 

MR.  GEORGE  MURPHY,  Washington:  I  would  suggest  as  the 
Committee  on  Resolutions  will  appoint  a  sub-committee  to  consider 
most  of  the  resolutions,  that  the  Committee  on  Resolutions  appoint  a 
sub-committee  on  this  motion. 

THE  PRESIDENT:     A  special  committee? 

MR.  GEORGE  MURPHY:  A  special  committee.  There  will  be 
a  great  many  on  the  Resolutions  Committee  that  will  have  nothing  to  do 
for  the  rest  of  the  days  and  I  think  they  want  to  be  busy,  and  I  would 
recommend  that  this  committee  appoint  such  a  committee  to  draft 
this  law. 

MR.  HENRY  S.  VOLKMAR:  Anything  to  get  it  before  the  Con- 
gress; but  we  all  think  that  Governor  Allen  is  the  man  to  take  it  up. 

THE  PRESIDENT:  He  is  already  on  the  Resolutions  Committee 
and  we  can  ask  him  to  do  that. 

MR.  P.  D.  DECKER,  Missouri:  I  feel  just  a  little  embarrassed 
before  this  Mining  Congress.  As  I  stated  to  the  Secretary,  in  a  little 
low  voice,  I  come  from  Missouri.  (Applause.)  Now  laugh.  I  have  been 
over  this  town  a  little  bit,  and  I  have  seen  something,  but  I  want  to  tell 
you  that  I  have  seen  bigger  mines  than  I  have  seen  here.  We  have  them 
near  Joplin.  I  am  glad  that  I  have  not  moved  any  farther  west  than  I 
am  now.  I  feel  like  the  rest  of  you,  that  I  have  been  royally  entertained 
out  here,  and  I  have  been  greatly  impressed  with  these  great  mountains, 
these  fine  buildings,  these  hospitable  people,  these  intelligent  men  and 
beautiful  women.  I  like  it  most  because  it  looks  like  home.  I  am  not 
willing  to  admit  yet  that  all  the  glory  and  all  the  civilization  is  out  in 
this  country.  (Laughter.)  I  am  glad  it  is  as  great  as  it  is.  I  am  glad  it 
is  SQ  wonderful;  and  I  wish  that  I  could  stay  here  long  enough  to  know 
all  about  it,  and  then  go  back  home  to  live.  (Laughter.) 

You  understand  that  this  is  a  game  of  everybody  hollering  for  their 
own  country;  and  among  other  things  I  can  say  in  behalf  of  old  Missouri 
that  Governor  Allen  was  born  there.  (Applause.)  And  I  wish  that  it 
were  possible  for  a  Committee  on  Resolutions  to  settle  this  question  as 
to  the  protection  of  the  mining  investor;  but  be  ye  not  deceived,  gentle- 
men— this  is  just  a  small,  humble  voice  from  the  grand  old  state  of  Mis- 
souri, but  it  wants  to  raise  the  suggestion  that  you  will  never  be  able  to 
do  it  by  law  (applause) ;  and  I  think  it  is  timely  to  make  a  few  remarks 
along  that  line,  because  I  believe  in  this  Mining  Congress.  I  believe  it  is 
doing  a  wonderful  work  in  this  country;  but  the  success  and  efficiency 
of  this  great  organization  depends  upon  its  practical  sense;  and  I  wish 
to  remind  you,  and  it  should  not  be  necessary  for  a  lawyer  to  remind  a 


48  OFFICIAL    PROCEEDINGS 

business  man,  and  especially  a  miner,  that  you  cannot  run  the  mining 
business  or  any  other  business  by  the  state. 

Thomas  Jefferson — pardon  me  for  alluding  to  him,  because  I  am 
from  Missouri  (applause) — Thomas  Jefferson  said  in  his  first  inaugural 
address — it  is  old,  I  don't  know  whether  you  ever  get  that  kind  of  doc- 
trine out  here  or  not,  but  it  won't  hurt  you,  so  I  will  give  you  some — he 
was  boasting,  no,  not  boasting;  he  was  just  speaking  about  the  wonderful 
future  of  this  great  country.  He  was  speaking  about  its  benign  religion; 
he  was  speaking  about  its  almost  boundless  territory;  he  was  speaking 
about  its  wonderful  resources;  and  then  he  said,  "One  thing  more,  my 
fellow  citizens,  is  necessary  to  make  us  a  happy  and  prosperous  people. 
One  thing  more:  a  wise  and  frugal  government  which  shall  restrain  men 
from  injuring  one  another;  which  shall  leave  them  otherwise  free  to 
regulate  their  own  pursuits  of  industry  and  improvement,  and  shall  not 
take  from  the  mouth  of  labor  the  bread  it  has  earned."  (Applause.) 
"A  wise  and  frugal  government  which  shall  restrain  men  from  injuring 
one  another;  which  shall  leave  them  otherwise  free  to  regulate  their  own 
pursuits  of  industry  and  improvement,  and  shall  not  take  from  the  mouth 
of  labor  the  bread  it  has  earned."  (Applause.)  This  is  the  sum  of  good 
government,  and  this  is  necessary  to  close  the  circle  of  our  felicities. 
This  is  what  Thomas  Jefferson  said  a  long  time  ago,  and  this  is  just  as 
true  as  when  it  was  uttered  by  him,  and  it  applies  to  the  great  business 
of  mining  as  much  as  it  does  to  agriculture  and  any  other  business  in 
this  country.  In  other  words,  the  time  will  never  come  when  you  can 
conduct  the  mining  business  by  a  commission.  (Anplause.)  It  is  all 
right  to  pass  laws  by  the  State  of  Montana,  and  Washington,  and  Ore- 
gon, and  Utah,  and  the  grand  old  State  of  Missouri,  that  will  restrain 
men  from  injuring  one  another;  but  whenever  you  cross  that  Jeffersonian 
line  and  interfere  with  individual  enterprise,  you  do  more  harm  than  you 
do  good.  (Applause.)  And  when  you  start  to  write  that  law  you  will 
find  it  harder  to  write  than  it  is  to  talk  about,  because  you  can't  run  the 
mining  business  like  you  do  the  insurance  business,  because  the  mining 
business  is  not  an  exact  science.  It  does  not  depend  on  the  mortality 
table.  Your  country  is  bigger  in  mining  properties  than  ours,  but  I  want 
to  tell  you  that  our  little  delegation  comes  from  the  greatest  zinc  pro- 
ducing district  in  this  world.  That  is  the  district  of  Oklahoma,  Arkansas 
— now  laugh  again — Oklahoma  and  Missouri,  and  the  features  of  ruining 
there  I  apprehend  are  just  the  same  as  they  are  in  the  Rocky  Mountains. 
Many  a  mining  expert  will  give  his  endorsement  to  properties  that  will 
never  pay.  (Applause.)  I  know  that  is  true  in  Joplin,  and  I  suspect  it 
is  true  in  that  grand  old  State  of  Montana.  (Applause.)  Time  and  time 
again  experience  in  the  lead  and  zinc  district  from  which  we  hail  has 
revealed  the  fact  that  land  which  has  been  condemned  by  experts — and 
also  by  practical  miners — has  yielded  forth  its  treasures  almost  untold. 
There  sits  a  man  yonder  from  Joplin,  Senator  Malang.  "His  hair  ain't 
cut  but  his  eye  teeth  is."  (Laughter.)  He  never  went  to  college,  but  he 
knows  the  mining  business  in  the  zinc  district  from  A  to  Z.  He  was 
reminding  us  as  he  was  coming  up  on  the  train  that  when  he  was  work- 
ing over  there  in  that  Old  Daylight  Mine — you  don't  know  about  it;  you 
ought  to  see  it — that  a  friend  of  his  on  some  adjoining  land  come  to  him 
and  says,  "John,  you  are  pumping  a  lot  of  water  off  of  my  mine  and  you 
are  helping  me,  but  for  God's  sake,  don't  waste  your  time  here."  Yet  he 
kept  on.  Today  that  mine  is  the  best  mine  in  Jasper  County  Missouri. 
Now,  I  apprehend  that  at  the  time  he  started  to  dig  over  there  in  the 
Daylight  Mine  if  it  had  been  necessary  for  him  to  send  in  a  report  to  the 
Commissioner  of  Mines  or  to  the  Secretary  of  State  or  to  the  Lieutenant 
Govenor  (applause),  if  he  had  made  a  report  on  what  he  had  it  would 
not  have  been  much  benefit  to  him  or  to  society  either.  (Applause.)  As 
Jefferson  said,  this  government  should  restrain  men  from  injuring  one 
another. 

You  don't,  need  any  different  laws  than  the  farmer  needs.  There 
has  been  a  law  on  the  statute  books  of  every  State  for  a  good  many 


AMERICAN    MINING    CONGRESS  49 

years  that  will  put  the  criminal  in  jail;  and  you  will  be  better  writers  of 
law  than  the  jurists  of  this  country  if  you  will  be  able  to  improve  on 
that  law.  There  is  not  a  State  in  this  Union  where,  if  a  man  knowingly 
and  willfully  misrepresents  a  proposition  to  the  detriment  of  his  fellow- 
men,  he  cannot  be  put  in  jail  or  made  to  reimburse.  (Applause.) 

The  best  thing,  in  my  judgment,  that  can  be  done  is  what  was 
stated  by  your  Secretary.  Let  this  Mining  Congress  awake.  Let  them 
assist  in  the  prosecution  of  the  crook  and  the  knave  and  the  fakir. 
(Applause.)  The  trouble  is  not  so  much  with  the  laws  of  the  different 
States  as  it  is  with  the  enforcement  of  the  laws  in  the  different  States. 
(Applause.)  There  could  be  no  harm,  as  I  see,  in  having  a  Commis- 
sioner of  Mines,  or  somebody  where  you  could  send  all  the  facts  to. 
It  will  at  least  give  a  good  job  to  some  man,  and  if  he  belonged  to  the 
right  political  party  I  wouldn't  object  to  that.  (Laughter  and  applause.) 

But  the  greatest  thing  that  we  need  in  this  country  to  protect 
the  mining  investor  is  the  dissemination  of  knowledge.  (Applause.) 
In  other  words,  let  the  people  in  this  country  know  that  it  is  not  wise 
to  do  like  the  man  did  in  the  Bible,  who  bought  a  farm  and  then  went 
to  look  at  it  afterwards.  A  man  should  not  buy  mines  or  mining  stock 
without  investigation.  (Applause.)  They  wouldn't  think  of  buying  a 
suit  of  clothes  without  looking  at  it.  They  wouldn't  buy  a  hat  or  a 
pair  of  shoes,  they  wouldn't  buy  a  farm,  they  wouldn't  buy  a  grocery 
store  without  looking  at  it  and  investigating  it  first.  Why,  then,  should 
a  man  living  in  New  York  buy  stock  in  a  mine  in  Montana,  or  even  in 
Washington,  without  making  an  investigation?  Now,  then,  there  is 
danger,  too. 

I  wish  to  point  out  to  you  in  putting  this  into  the  hands  of  a 
Mining  Commissioner  of  each  State,  that  there  is  danger  in  it  because 
you  have  had  them  try  to  sell  you  life  insurance;  haven't  you?  What 
do  they  say?  If  you  live  in  one  of  those  States  where  there  is  a  State 
Insurance  Commmissioner,  whose  business  it  is  to  put  an  O.  K.  on  it, 
the  first  thing  they  show  you  is  that  the  state  authority  has  put  his 
O.  K.  on  that  particular  insurance  company.  (Applause.)  And  I  have 
seen  some  of  those  State  O.  K.'d  insurance  companies  go  to  the  wall, 
too.  Unless  the  State  of  Montana  is  going  to  put  a  financial  guarantee 
back  of  a  mining  proposition,  then  it  should  not  put  its  endorsement  on 
that  mining  proposition.  (Applause.)  It  is  all  right  to  have  an  inves- 
tigation, but  I  don't  believe  the  time  has  come  yet  in  America  when 
the  State  should  transact  business  for  the  business  man  of  this  country. 
(Applause.) 

If  a  man  wants  to  buy  stock  in  a  mine,  let  him  investigate  or  hire 
some  good  engineer  or  some  prospector  who  has  dug  the  dirt  to  look  at 
it.  (Applause.)  When  you  hire  a  man  to  look  at  a  farm  for  you,  you 
get  a  man  whom  you  know,  a  man  who  knows  a  farm  and  all  the  points 
about  it,  a  man  whom  you  know  is  your  friend.  Why  isn't  that  the  only 
safe  way  to  buy  a  mine?  For  my  part,  I  wish  to  speak  humbly  to  you 
all,  but  I  don't  think  much  of  the  State  supervision  of  mines  for  the 
protection  of  investors  in  this  county. 

In  the  first  place,  you  are  liable  to  put  the  State  endorsement  im- 
pliedly,  you  understand,  upon  an  unworthy  proposition,  and  can,  by 
withholding  the  endorsement  of  the  State  in  which  a  mine  is  located, 
make  it  impossible  for  the  development  of  some  of  the  richest  treas- 
ures that  God  has  put  beneath  this  soil.  (Applause.)  And  I  stand 
here  from  Missouri  advocating  still  the  doctrine  of  Thomas  Jefferson. 
Let  the  people  follow  their  own  individual  enterprises.  Let  them  look 
out  for  their  own  interests.  Let  this  great  American  Mining  Congress 
disseminate  knowledge  about  the  mining  industry,  teach  young  men  how 
to  mine,  join  practical  experience  with  technical  knowledge;  let  the 
world  move  on,  not  by  paternalism,  not  by  State  regulation  in  all 
things,  but  by  the  dissemination  of  knowledge;  and  let  the  men  with 
courage,  men  with  vitality,  develop  this  great  country,  from  Montana 
and  Washington  to  New  York  City.  (Continued  applause.) 


50  OFFICIAL    PROCEEDINGS 

MR.  R.  F.  COLLINS,  Spokane:  Mr.  Chairman  and  ladies  and  gen- 
tlemen: I,  too,  am  laboring  under  the  same  embarrassment  as  the  gen- 
tleman who  just  preceded  me.  I  am  from  Missouri  also.  (Laughter.) 
And  I  heartily  agree  with  the  efforts  that  are  being  made.  We  are 
liable  to  open  a  greater  field  of  fraud  than  that  which  you  propose  to 
close.  Now  let  us  see.  Is  there  a  mining  expert  in  this  room  who  can 
guarantee  to  any  body  of  capitalists  in  the  early  stages  of  development 
that  three  prospects  out  of  five  will  make  mines?  I  don't  think  there 
is.  If  there  is,  let  him  put  up  his  hand,  and  I  will  undertake  to  guar- 
antee him  a  salary  of  a  million  dollars  a  year.  (Applause.)  Let  us,  as 
has  been  said,  educate  the  people  of  this  country  to  know  that  anything 
that  promises  large  returns  upon  investment  carries  with  it  a  certain 
degree  of  hazard. 

There  is  another  thing  I  would  add  to  that,  that  when  I,  as  a 
promoter  or  anyone  else  as  a  promoter  in  any  enterprise  that  is  entered 
into,  that  that  individual's  promotion  stock  shall  not  be  marketed  while 
we  are  raising  the  money  to  finance  the  enterprise.  What  has 
been  the  cause  of  the  frauds  to  this  country  in  the  mining  way?  It  is 
because  of  some  promoter  getting  hold  of  a  prospect,  incorporating  it, 
appropriating  two  hundred  thousand  to  his  own  individual  use  for  the 
promotion,  and  after  a  reputation  has  been  developed  with  the  people 
of  the  country  on  the  sale  of  the  treasury  stock,  he  dumps  his  two  hun- 
dred thousand  individual  stock  on  the  market  and  steps  from  under. 
When  this  American  Mining  Congress  shall  make  it  impossible  for  a 
promoter  to  step  out  and  leave  the  purchasers  of  the  stock  holding  the 
bag,  they  will  go  a  long  way  towards  furthering  the  legitimate  mining 
in  this  country.  (Applause.)  What  we  need  more  is  that  when  we 
sell  stock  to  a  man  and  take  him  in  as  a  partner  we  shall  be  prevented 
from  throwing  him  down  and  sneaking  from  under.  I  would  make  it 
so  that  a  promoter  of  stock  or  those  holding  promotion  stocks,  shall 
be  required  to  hold  such  stock  until  every  purchaser  of  treasury  stock 
shall  have  been  notified  sixty  days  before  any  individual  could  sell  a 
single  share  of  that  promotion  stock.  Why,  you  could  make  your  min- 
ing inspectors  and  your  boards,  but  they  are  no  guarantee  against  fraud. 
I  don't  believe  in  paternalism.  I  believe  in  what  the  gentleman  has 
said,  which  would  leave  the  people  as  free  as  possible,  but  to  restrain 
men  from  injuring  each  other.  That  is  the  whole  gist  of  government, 
and  that  is  the  thing  towards  which  these  people  should  direct  their 
energies.  We  need  capital  in  the  West.  We  are  bidding  for  capital. 
There  are  thousands  of  men  in  the  East  who  are  perfectly  willing  to 
take  the  chances  if  they  know  they  are  going  to  get  a  good  run  for  their 
money,  and  that  is  all  they  ask.  (Applause.) 

Any  man  that  buys  prospect  mining  stock  and  expects  anything 
more  than  that  ought  to  keep  his  money  in  his  pocket  and  not  put  it 
in  anything.  (Applause.) 

Who  was  it?  Was  it  an  expert  that  opened  the  Herucles?  No. 
How  many  of  the  greatest  mines  in  the  West  have  been  branded  as 
worthless  by  some  of  the  greatest  experts  in  the  country.  Why,  who 
was  it  that  opened  and  started  the  great  Cripple  Creek  district  but  a 
carpenter.  No,  I  want  to  tell  you,  you  can't  put  it  on  a  board.  I 
have  a  letter  in  my  pocket  from  a  certain  mining  inspector  in  a  certain 
western  state,  who  had  "knocked"  a  certain  mine  property  and  a  certain 
political  gentleman,  rather  prominent  in  politics,  wrote  to  him  and  told 
him  he  had  no  right  to  say  what  he  had  said  about  this  particular  pros- 
pect. And  this  mining  inspector  came  right  down  and  wrote  a  very 
nice  letter,  and  in  that  letter  he  said,  "I  didn't  know  that  you  were  con- 
nected with  that  property.  If  I  had,  I  wouldn't  have  said  what  I  did." 
Then  he  went  on  to  say  that  he  had  not  been  on  the  ground  at  all  and 
didn't  know  anything  about  the  property.  When  you  go  to  establishing 
bureaucrats  and  commissions  to  investigate  and  give  an  O.  K.  you  will 
open  a  greater  field  of  fraud  than  the  one  you  are  attempting  to  close. 
(Applause.)  Not  only  that,  but  you  will  strike  down  the  greatest  in- 
dustry in  the  world  today,  mining.  (Applause.)  Who  is  it  that  has 


AMERICAN    MINING    CONGRESS  51 

produced  the  three  billions  of  dollars  of  gold  in  the  United  States?  It 
has  been  the  man  who  was  not  afraid  to  take  a  chance.  He  packed 
his  burro  and  went  out  into  the  mountains,  the  prospector,  the  de- 
veloper. The  men  who  go  in  and  turn  the  earth  and  blast  their  way 
in  and  take  the  treasures  from  their  hidden  places.  Commissions  are 
not  what  you  want;  you  want  to  stop  these  promoters  who  start  out  and 
lose  their  nerve — make  them  stay  with  the  company.  They  stay  with 
the  company  six  weeks,  six  months  and  get  the  things  going  well,  and 
say  I  don't  think  it  will  make  a  good  mine;  here  is  where  I  get  out. 
I  want  that  man  made  to  stay  until  the  rest  of  them  get  out,  and  when 
you  go  that  far  I  believe  it  as  far  as  any  governmental  agency  can 
safely  go.  I  thank  you.  (Applause.) 

MR.  A.  W.  PATERSON,  Lewiston,  Idaho:  Gentlemen,  I  can 
hardly  agree  with  the  two  gentlemen  who  have  just  spoken  to  us  on 
mining  investments.  I  have  had  a  little  practical  experience  in  the 
mining  field  and  also  in  an  endeavor  to  raise  money,  and  I  believe  that 
the  first  thing  that  mining  men  should  consider  is  the  fullest  protection 
that  can  be  given  to  the  man  that  has  given  his  money  into  the  venture 
that  we  believe  will  produce  wealth.  The  first  thing  is  the  protection 
of  the  money  that  goes  into  those  ventures,  and  some  such  commission 
as  was  proposed  by  Governor  Allen  of  Montana  should  bring  about 
that  condition.  People  have  been  altogether  too  much  hoodwinked. 
It  isn't  the  matter  of  the  promoter  getting  his  little  money  and 
getting  out,  nor  is  it  a  matter  of  having  experts  pass  on  property,  but 
when  actual  mining  men  are  engaged  in  the  opening  up  of  those  proper- 
ties the  man  who  is  putting  in  his  money  may  not  be  able  to  judge  the 
technical  side  of  the  question,  but  he  can  judge  the  character  of  the  men 
that  he  is  putting  his  money  in  with.  There  are  very  few  men  who  are 
competent  to  judge  of  the  worth  of  a  prospect,  and  I  have  got  a  few 
thoughts  in  connection  with  the  proper  protection  of  men  who  make 
mining  investments,  and  the  men  who  try  to  protect  those  investments. 

In  the  first  place,  I  believe  that  that  commission  should  be  com- 
posed of  mining  men.  And  further  than  that,  the  men  who  undertake 
the  selling  of  mining  stock  or  the  opening  of  a  mining  property  should 
be  men  that  have  actual  knowledge  of  the  thing  undertaken,  and  with 
that  condition  the  money  that  is  put  into  a  mine  is  put  in  with  either 
one  of  two  results.  It  is  either  a  total  loss  or  a  big  return. 

And  along  the  line  of  a  proper  inspection,  there  are  a  few  thoughts 
that  occur  to  me,  and  it  is  this:  First,  the  thing  that  we  should  do 
with  the  stock  that  we  sell  to  the  investor  is  to  make  that  a  preferred 
stock.  In  other  words,  to  give  him  some  return  before  we  get  any 
return  from  our  property.  We  should  also  limit  the  salaries  of  any 
officer.  That  will  put  us  all  on  our  metal  and  it  will  make  our  propo- 
sition more  successful  and  we  will  get  our  profits  from  that  and  not 
from  the  stock  that  we  sell  to  the  investor.  Gentlemen,  I  thank  you. 
(Applause.) 

MR.  M.  BARTLETT,  Washington:  Under  the  heading  of  how 
to  protect  the  mining  investor  from  various  schemes  that  are  designed 
to  defraud  him,  I  wish  to  relate  a  little  experience  in  the  line  of  pro- 
moting a  mine.  There  are  lots  of  people  who  enter  the  mining  business 
as  greenhorns.  They  never  had  any  experience  before  in  their  lives  and 
they  follow  the  precepts  and  examples  in  this  business.  They  dig  a  pros- 
pect hole  and  capitalize  it  for  a  hundred  billion  dollars,  and  sell  shares 
at  one  cent  per  share.  It  looks  to  the  investor  like  it  is  a  good  easy 
money  making  game.  He  is  going  to  get  rich.  The  par  value  of  the 
stock  is  usually  a  dollar  and  probably  in  three  or  four  months  this 
stock  will  be  selling  at  par  and  he  has  made  ninety-nine  cents  a  share 
on  the  investment.  He  doesn't  stop  to  consider  that  the  mine  is  over- 
capitalized, and  even  if  it  were  placed  on  an  operative  basis,  the  divi- 
dends would  not  amount  to  enough  to  buy  him  a  fifteen-cent  meal.  In 
my  estimation,  I  believe  that  a  mine  should  be  thoroughly  prospected 
and  developed  before  it  is  incorporated  and  its  stock  placed  on 
the  market.  I  believe  that  the  prospectors  should  band  together  in  a 


52  OFFICIAL    PROCEEDINGS 

co-partnership,  and  take  pot  luck  with  each  other  in  showing  up  the 
minerals  in  the  mine  which  they  intend  to  incorporate  so  that  they 
can  arrive  at  a  conclusion  at  what  the  probable  value  of  the  mine  is 
to  be,  then  capitalize  it  at  a  very  low  figure  and  sell  stock  at  par,  and 
fix  it  so  that  this  stock  will  never  rise  above  par  until  the  mine  is  on 
an  operative  basis.  This  would  eliminate  the  gambling  feature  of  the 
stock  business.  You  would  not  see  any  stock  on  sale  in  the  exchanges. 
And  also,  the  original  owners  should  tie  up  their  stock  in  a  pool  agree- 
ment and  let  it  rest  there  until  they  derive  profits  from  the  mine.  If 
they  don't  derive  any  profits  they  are  losers.  The  buyer  of  the  stock 
would  take  the  same  risk  along  with  the  original  owners  of  the  mine. 
He  could  not  reasonably  expect  any  profit  out  of  his  stock,  unless  the  mine 
got  to  shipping  and  paying  a  dividend.  He  ought  to  know  this  right 
from  the  start,  that  when  he  buys  stock  that  he  cannot  expect  a  profit 
unless  the  mine  makes  a  profit,  and  cannot  expect  to  unload  his  stock 
on  someone  else  at  a  profit.  How  does  he  know  that  stock  is  worth 
any  more  than  he  paid  for  it?  It  is  a  great  problem  to  protect  the 
general  public  from  being  swindled  in  mining  stocks.  I  am  connected 
with  a  mining  proposition  in  the  State  of  Washington  and  must  confess 
my  amateurishness  with  mining  work,  but  I  said  from  the  start  that  in 
order  to  play  square  with  the  public  the  original  owners  must  tie  up 
their  stock  and  let  it  lay  there  in  a  pool  agreement,  until  the  mine  gets 
operating  and  paying  a  dividend. 

In  connection  with  this  proposition  I  want  to  state  a  great  in- 
justice that  has  been  done  the  American  people  by  past  legislation.  In 
1865  some  of  our  loyal  and  patriotic  representatives  in  Washington,  in 
Congress  assembled,  by  joint  resolution  deemed  it  necessary  to  convey 
as  a  gift  a  great  empire  to  a  corporation  that  wished  to  extend  a  rail- 
road from  Lake  Superior  to  Puget  Sound.  They  thought  that  it  would 
take  exactly  an  eighty-mile  strip  from  Lake  Superior  to  Puget  Sound, 
running  through  the  richest  mineral  belt  in  this  country,  in  order  to 
enable  that  corporation  to  build  a  railroad.  It  happened  that  the  Gov- 
ernment placed  a  proviso  in  this  grant  that  this  did  not  include  mineral 
lands;  but  later  on,  by  judicial  construction,  it  was  determined  that 
after  the  patent  passes,  that  the  title  absolutely  passes  from  the  Gov- 
ernment, and  if  mineral  is  thereafter  discovered,  that,  notwithstanding 
the  reservation  in  this  grant,  that  this  railroad  company  owns  the 
mineral  lands.  I  want  to  state,  gentlemen,  that  it  is  the  business  of  the 
general  land  office  at  Washington,  D.  C,  to  pass  upon  all  lands  before 
they  are  conveyed  to  the  railroad  company,  whether  they  are  mineral 
or  non-mineral,  and  it  is  their  business  to  inspect  all  of  this  land  to  see 
whether  it  is  of  that  character.  The  Government  has  conveyed  to  the 
Northern  Pacific  Railway  Company  some  of  the  most  valuable  mineral 
lands  in  America,  and  today  when  a  prospector  goes  into  these  moun- 
tains, not  knowing  where  he  is,  he  stakes  out  a  claim  and  develops  a 
mine,  and  in  later  years  when  the  railroad  corporation  sees  there  is  a 
good  mine  there  it  goes  and  runs  the  lines  and  finds  it  is  on  its  land 
and  says,  "get  off."  I  want  to  state  there  are  lots  of  things  that  the 
American  Mining  Congress  can  consider  in  order  to  do  justice  towards 
the  prospector.  I  want  to  state  that  after  mineral  is  discovered  by  a 
prospector  that  that  mineral  should  belong  to  him,  and  that  all  mineral 
land  should  come  under  the  law  of  eminent  domain;  that  after  a  man 
discovers  mineral  on  land,  no  matter  how  it  might  have  been  previously 
classified,  that  he  should  be  able  to  purchase  said  land  through  the 
courts  by  condemnation  proceedings,  the  same  as  a  railroad  company 
or  a  gas  company  condemns  land  for  its  purposes.  I  believe  that  a 
mining  company  should  be  considered  a  quasi  public  corporation,  or 
that  an  individual  or  an  association  should  be  enabled  to  exercise  these 
rights.  And  I  want  to  state  further  that  the  American  Mining  Congress 
has  a  broad  field  to  work  in  in  order  to  do  justice  to  the  majority  of 
the  prospectors  of  this  country.  I  can  produce  Government  documents 
by  George  Otis  Smith  and  Professor  Landes,  State  Geologist  of  Wash- 
ington, and  also  the  Twentieth  Annual  Report  of  the  United  States 


AMERICAN    MINING    CONGRESS  53 

Geological  Survey,  1900,  that  a  certain  belt  in  this  country  was  valuable 
mineral  land,  and  eight  years  after  these  reports  were  issued,  the  land 
was  conveyed  by  the  General  Land  Office,  the  Interior  Department,  to 
the  Northern  Pacific  Railroad  Company,  in  face  of  the  fact  that  there 
were  reservations  in  that  grant  that  no  mineral  land  should  pass  to 
this  company.  (Applause.) 

THE  PRESIDENT:  The  time  has  arrived  when  we  will  have  to 
close  this  discussion  for  the  time  on  account  of  having  to  receive  the 
reports  of  some  committees,  and  it  has  been  suggested  that  the  discus- 
sion be  closed  by  Colonel  B.  F.  Millard,  of  Valdez,  Alaska. 

COL.  MILLARD:  Mr.  Chairman  and  Gentlemen  of  the  Mining 
Congress:  I  had  refused  to  speak  this  morning,  on  account  of  a  bad 
cold,  and  I  don't  know  that  I  will  speak  long  now,  but  the  question 
under  discussion,  to  me,  is  the  most  important  question  that  can  come 
before  the  house. 

Now,  unlike  the  eloquent  gentleman  from  Missouri,  I  am  not 
from  Missouri,  but  you  have  got  to  show  me  that  any  change  in  the 
existing  conditions  pertaining  to  this  matter  is  right.  I  come  from 
the  last  resort  of  the  possibilities  of  the  prospector  on  American  soil.  I 
come  from  the  country  that  lies  north  of  us,  the  Frozen  Jewel  of  the 
North,  Alaska,  the  greatest  coming  country  that  the  mining  world  has 
ever  known.  (Applause.) 

Gentlemen,  it  seems  to  me  from  the  argument  by  some  of  the  gen- 
tlemen who  have  spoken  here,  that  there  is  a  great  desire  to  protect 
the  mining  investor.  My  advice  to  the  mining  investor  is,  use  the  same 
common  sense  in  investing  in  mining  properties  that  you  would  if  you 
were  buying  a  potato  patch.  (Applause.)  When  you  go  out  here  on 
the  Board  of  Trade  and  buy  stocks  in  any  company,  mining  or  other- 
wise, does  any  man  guarantee  to  you  that  you  are  going  to  make  a 
profit  on  that  stock?  No.  Does  the  steel  company  do  it,  or  any  other 
company?  You  go  in  and  buy  as  an  investment  and  take  ycur  chances, 
and  the  average  man  that  invests  in  mining  stocks  that  he  does  not 
know  anything  about  and  that  he  expects  will  pay  a  big  profit,  takes  a 
flier,  as  they  call  it.  He  pays  ten  cents  for  something  that  may  be 
worth  fifty  dollars.  If  he  loses,  he  loses  little,  and  if  he  wins  he  wins 
much.  Now,  that  is  my  experience  and  I  don't  know  that  I  can  do  any- 
thing better  in  talking  to  you  than  to  relate  some  of  my  own  ex- 
periences. 

I  have  been  a  prospector,  but  I  found  it  didn't  pay.  Then  I  pur- 
chased properties  and  promoted  them,  and  I  want  to  give  you  a  little 
history  of  the  greatest  property  up  in  our  section  of  the  country.  At 
one  time  I  was  a  part  owner  in  the  great  Bonanza  Mine  that  has  just 
paid  two  million  dollars  in  dividends.  That  mine  was  turned  down  flat 
by  no  less  a  person  than  Mr.  Winchell,  one  of  the  great  experts.  He 
said  it  was  secondary  formation  and  couldn't  last.  But  the  people  today 
would  not  take  fifty  millions  of  dollars  for  it.  Last  summer  I  had  an 
expert  working  for  me — I  have  nothing  against  the  expert,  though  I 
have  no  great  love  for  him,  so  far  as  experts  on  prospects  are  con- 
cerned. I  paid  him  a  high  salary.  I  got  him  through  the  recommenda- 
tion of  the  Mining  School  of  Colorado.  He  came  to  me  highly  recom- 
mended. I  sent  him  out  into  the  field  to  look  over  a  hundred  properties 
for  me  last  summer,  and  he  turned  down  every  property  but  one.  He 
said,  there  is  a  bare  possibility  that  that  might  make  a  mine.  He  looked 
at  the  Copper  Mine,  and  reported  that  it  was  no  good  and  would  soon 
hole  out.  I  could  have  gotten  that  property  for  twenty-seven  thousand 
dollars,  on  my  own  terms  almost.  Other  people  took  the  property, 
spent  about  ten  thousand  dollars  on  it,  and  today  the  Guggenheim 
people  have  taken  it  over  and  it  is  no  doubt  one  of  the  greatest  mines 
up  there. 

1  was  fortunate  in  taking  up  the  Cliff  Mine,  and  some  of  you  have 
heard  of  that  little  gold  mine.  It  is  undoubtedly,  for  the  size  of  it,  the 
greatest  producer  of  wealth  in  the  Western  country.  It  had  been  turned 
down  time  and  again.  It  was  brought  to  my  attention.  I  went  down  to 


54  OFFICIAL    PROCEEDINGS 

examine  it.  The  face  of  it  brought  only  seven  dollars.  No  wonder  they 
had  turned  it  down.  Upon  the  hill,  in  digging  down  a  little  ways,  I  got 
ore  that  went  over  fourteen  hundred  dollars,  and  I  promoted  a  little 
company.  We  sold  our  stock  at  twenty-five  cents.  We  put  up  a  mill 
immediately  and  after  thirty  days'  running  of  that  mill  we  paid  them 
back  their  money.  Now,  gentlemen,  the  investor  there  might  have  lost 
his  money  just  the  same  as  they  have  lost  it  in  other  places.  There  was 
nothing  under  God's  heaven  to  indicate  that  that  was  going  to  be  a 
success.  It  was  only  a  little  prospect  on  the  surface  that  went  high 
grade,  but  it  happened  to  be  there.  It  was  one  of  the  cases  that  came 
out  all  right. 

I  promoted  another  company,  which  is  called  the  Mineral  Creek.  I 
will  tell  you  how  I  did  that.  1  took  the  ore  to  Chicago.  I  rented  a  room 
in  a  hotel,  and  placed  it  upon  the  table  and  invited  the  public  to  come 
and  see  me.  They  saw  all  of  it  that  I  had  seen.  It  was  the  prospect  on 
the  surface.  One  gentleman  asked  me,  he  said,  "Where  is  your  pros- 
pectus?" I  said,  "I  haven't  got  any."  He  said,  "Have  you  got  anything 
in  writing  or  printing  that  you  can  show  a  man  that  he  can  study?" 
"Not  a  thing."  "Why?"  "Why?  Because,  sir,  you  see  all  here  that  I 
have  seen,  excepting  the  extent  of  the  range,  and  that  is  shown  on  this 
map,  the  length  of  each  outcropping  and  the  width,  the  ore  taken  from 
each  outcropping,  the  assay  sheets,  and  there  is  the  ore.  Judge  for  your- 
self." "But,  why  don't  you  put  out  printed  matter?"  "Simply  because 
you  are  liable  to  say  things  in  printed  matter  that  will  not  pan  out  just 
exactly  as  you  say  them,  and  some  time  in  the  future  if  these  conditions 
do  not  develop — and  I  don't  know  whether  they  will  or  not — you  will 
come  to  me  and  say,  'Here,  you  said  so  and  so  and  here  is  the  printed 
matter.'  Well,  under  this  system,  you  come  to  me  and  say,  'Here,  the 
vein  didn't  pan  out  the  way  you  said  it  would.  You  said  so  and  so.' 
I  will  say,  'I  didn't  say  that.'  You  will  say,  "You  did,'  and  I  will  say, 
'You  are  a  liar,'  and  that  ends  the  argument.  (Laughter.) 

My  expert  turned  down  all  those  claims.  He  said  they  wouldn't  go 
down,  but  I  had  the  stubbornness  and  I  kept  at  it,  and  I  have  demon- 
strated that  they  did  go  down,  and  in  two  of  them  I  have  found  exceed- 
ingly rich  ore.  Now,  no  man  can  promise  mines  beforehand  and  no  man 
pretends  to,  and  I  never  have  had  an  expert  tell  me  what  was  one  foot 
under  my  ground  and  undertake  to  swear  to  it.  (Applause.) 

Now,  here  is  another  proposition.  Twelve  years  ago  I  had  a  friend, 
an  eminent  geologist  in  the  Government's  employ,  and  while  they  sel- 
dom say  anything  pertaining  to  the  country,  he  did  advise  me  (because 
I  had  saved  his  life  once)  never  to  spend  a  dollar  in  the  Prince  William 
Sound  Valley,  especially  the  upper  end  of  it,  in  what  he  termed  the  cap 
rock  of  that  country,  looking  for  gold.  Now,  the  Cliff  mine  today  is  in 
that  country,  and  other  mines  are  under  development,  and  I  can  point 
out  over  twenty  today  that  are  worth  having  that  are  in  there.  Last 
summer  Mr.  Brooks  looked  them  over  and  he  gave  me  the  satisfaction 
of  saying  that  there  was  no  reason  why  the  conditions  that  prevailed 
upon  the  surface  should  not  go  down.  That  is  all  I  wanted  him  to  say. 
The  surface  is  good  enough. 

Now,  gentlemen,  it  has  been  suggested  here  that  some  kind  of  a  board 
be  organized  by  law,  to  which  a  man  should  present  his  claims  or  his 
property,  whatever  it  might  be,  if  he  wanted  to  promote  a  company. 
Who  would  be  that  board?  What  source  would  they  come  from?  Would 
they  be  a  board  of  experts?  We  will  say  that  they  were.  We  will  as- 
sume that  I  have  a  little  property  to  promote  of  four  or  five  claims  in 
Alaska.  I  have  to  submit  those  claims  to  that  board.  We  will  assume 
that  the  Guggenheim  Company  up  there  or  any  other  company  is  a 
deadly  enemy  of  mine.  We  will  assume  that  they  have  a  great  influence 
over  that  board.  Where  would  I  stand?  (Applause.)  Now,  there  is  the 
possibility.  And  I  don't  care  whether  your  board  comes  from  the  expert 
or  from  the  geological  department,  or  any  other  department,  there  is  the 
possibility  there  of  the  big  men  getting  control  of  that  and  downing  the 


AMERICAN    MINING    CONGRESS  55 

little  fellow,  and  I  want  to  tell  you,  gentlemen,  that  I  stand  here  to 
raise  my  voice  in  every  way  I  can,  to  protect  the  pioneer  and  the  pros- 
pector. (Applause.)  If  it  had  not  been  for  the  pioneer  and  the  pros- 
pector in  the  earliest  settlements  of  this  country,  there  would  have  been 
no  use  for  anybody  else.  If  it  had  not  been  for  the  pioneers,  there 
would  be  no  use  for  your  experts  or  your  geologists.  It  is  the  man 
that  has  taken  his  life  in  his  hands  and  gone  to  the  front  that  has  made 
the  country  what  it  is,  and,  only  for  him,  the  country  would  still  have 
been  east  of  the  Mississippi  River.  And  I  can  see  why  any  proposition 
which  you  might  set  forth  here  is  going  to  do  a  great  injury  to  the 
prospector,  and  especially  to  the  Alaska  prospector. 

Gentlemen  of  the  convention,  away  back  yonder,  when  time  was 
young,  nature  in  its  laboratory,  deposited  in  the  great  mountains  of 
Alaska  untold  wealth,  and  when  time  is  growing  hoary  with  age  and  the 
angel  is  calling  together  the  last  remnant  of  civilization  on  this  great 
globe,  and  when  Gabriel  gathers  in  the  last  little  band,  he  will  find  the 
band  of  prospectors  still  in  Alaska.  It  never  can  be  taken  out.  It  is 
too  great.  I  stand  here,  standing  by  Alaska,  heart  and  soul,  and  nailing 
her  banner  to  the  mast.  (Applause.) 

GOVERNOR  W.  R.  ALLEN:  May  I  say  a  few  words,  Mr. 
President? 

THE  PRESIDENT:     We  will  grant  you  two  minutes. 

GOVERNOR  ALLEN:  I  have  just  returned  from  a  meeting  of 
the  resolutions  committee;  I  understand  that  the  discussion  now  being 
had  was  precipitated  by  remarks  made  by  me  this  morning;  I  have  not 
been  able  to  follow  the  arguments,  but  briefly  want  to  say  that  if  I 
mistake  not,  after  the  year  nineteen  thirteen  the  State  of  Montana  will 
have  «  law  upon  the  statute  books  featured  after  the  Kansas  "Blue 
Sky"  law;  furthermore,  if  anyone  hailing  from  Montana  presents  to  you 
in  New  York,  or  elsewhere,  a  proposition  to  purchase  stock,  you  may 
wire  some  state  official  and  ascertain  if  it  is  a  matter  of  record  in 
Montana  and  if  the  statements  made  by  him  are  in  accord  with  sworn 
statements  on  file  in  the  State  Department. 

When  you  file  a  location  notice  with  the  county  clerk  and  recorder 
certifying  that  you  own  a  certain  piece  of  land,  it  is  for  the  purpose 
of  giving  notice  to  the  world  that  you  claim  that  particular  piece  of  land. 
In  filing  statements  with  the  Commissioner  of  Corporations  you  will 
be  giving  notice  to  the  public  that  you  intend  to  sell  stock  under  certain 
conditions,  and  I  think  we  should  investigate  the  method  of  carrying 
this  plan  into  operation;  make  it  as  broad  and  comprehensive  as  pos- 
sible. A  law  cannot  be  passed  that  will  compel  owners  of  mining 
property  to  file  reports  with  the  State  Department,  but  it  will  be  to 
their  interest  to  do  so  voluntarily. 

I  yield  to  no  one  in  my  reverence  and  respect  for  the  prospector — 
I  am  a  son  of  a  prospector  and  a  prospector  myself;  I  am  not  a  mining 
engineer,  but  have  had  some  practical  experience  in  developing  and 
promoting  mining  propositions;  I  know  it  would  not  have  been  a  hard- 
ship upon  me  to  have  filed  my  statements  with  some  department  of 
state.  One  day  while  I  was  in  the  east  trying  to  interest  some  one  in 
a  legitimate  prospect  that  gave  promise  with  development,  I  found  a 
proposition  that  was  being  presented  there  with  an  ore  body  worth 
seven  million  dollars,  the  ore  was  blocked  out  and  only  one  hundred 
thousand  dollars  was  needed  to  erect  a  mill  to  begin  operations  and 
enormous  dividends  would  be  paid.  I,  or  the  people  buying  this  stock 
had  no  way  to  ascertain  the  truth  of  these  statements.  Had  I  been  in 
position  to  wire  state  officials  from  whence  these  gentlemen  came  I 
could  have  verified  or  disproved  the  statements.  I  knew  on  the  face 
of  it  that  it  was  false,  but  I  had  no  protection,  neither  did  the  investors. 
I  should  like  to  see  a  department  established  in  every  mining  state 
whereby  information  could  be  furnished  investors  and  stock  buyers.  1 
think  we  can  help  the  legitimate  prospector  and  honest  promoter  by  so 
doing.  (Applause.) 


56  OFFICIAL    PROCEEDINGS 

THE  PRESIDENT:  There  will  be  ample  time  for  the  discussion 
of  this  subject  when  the  resolution  relating  to  it  is  brought  in,  but  we 
will  be  compelled  at  this  time,  on  account  of  having  several  reports  to 
read,  to  adjourn  a  little  early  in  order  to  prepare  the  hall  for  the  exer- 
cises in  the  evening. 

I  have  just  talked  with  Dr.  H.  Foster  Bain  and  he  informs  me  that 
his  report  is  not  ready  as  yet  on  the  U.  S.  Geological  Survey.  Mr.  H.  N. 
Lawrie  has  the  report  of  the  Committee  on  the  Bureau  of  Mines.  He 
will  now  make  his  report. 

H.  N.  LAWRIE,  Portland,  Oregon:  Mr.  President,  and  Members 
of  the  American  Mining  Congress,  Ladies  and  Gentlemen — The  address 
of  our  President  last  evening  outlined  the  great  usefulness  of  the 
American  Mining  Congress  in  carrying  out  various  problems  for  which 
organizations  already  in  the  field  could  not  assume  the  responsibility. 
In  this  connection  he  brought  out  the  fact  that  the  Bureau  of  Mines 
had  accomplished  a  great  deal  along  the  line  of  saving  lives  in  under- 
ground mines,  particularly  in  coal  mines.  Your  Committee  on  the 
Bureau  of  Mines,  realizing  this  fact,  believes  that  one  of  the  principal 
things  to  be  accomplished  by  the  Bureau  of  Mines  in  the  future  is  a 
similar  research  pertaining  to  the  saving  of  life  in  metal  mines.  Popular 
opinion  seems  to  indicate — because  the  press  usually  accentuates  it — 
on  account  of  the  great  accidents  in  coal  mining,  that  the  total  loss  of 
life  in  coal  mining  enterprises  is  greater  than  that  of  metal  mining,  but 
such  is  not  borne  out  by  statistics.  The  percentage  of  loss  of  life  in 
proportion  to  the  total  number  of  miners  employed  is  larger  and  always 
has  been  in  the  pursuit  of  metal  mining  than  it  has  been  in  coal  mining. 
Wherefore  we  deem  it  advisable  that  the  committee  recommend  to  the 
Bureau  of  Mines  that  the  matter  of  the  saving  of  life  in  the  metal  mines 
be  made  an  important  feature  of  its  future  work. 

The  second  point  that  comes  to  our  attention  is  the  necessity  for 
research  in  the  economic  handling  of  ores  and  the  economic  features  of 
development,  together  with  the  ceramic  industries.  With  this  in  mind 
it  is  well  to  call  attention  now  to  the  fact  that  large  corporations  of 
today  have  been  enabled  to  extend  their  power  and  accumulate  wealth 
largely  by  using  the  information  gained  by  research  in  their  labora- 
tories, and  because  of  this  fact  they  are  now  deriving  the  benefit  directly 
from  the  money  so  expended.  Now,  if  the  large  corporations  find 
that  they  have  been  so  much  benefited  by  this  research  it  becomes 
apparent  that  the  Bureau  of  Mines,  existing  for  the  benefit  of  the  mining 
public,  should  extend  it's  research  along  similar  lines  to  the  particular 
service  of  the  individual  operator,  so  as  to  enable  him  to  meet  the  com- 
petition of  the  larger  corporation  and  the  larger  capital.  It  is,  there- 
fore, suggested  by  this  committee  that  a  resolution  be  adopted  urging 
that  research  work  be  carried  on  along  the  line  of  economic  treat- 
ment of  the  ores  and  particularly  with  the  subject  of  electrical  smelting. 
It  would  place  the  individual  operator,  should  a  system  of  electrical 
smelting  become  possible  on  a  commercial  scale,  in  a  position  to 
compete  without  risking  his  capital  or  the  smaller  capital  of  the  com- 
pany, ^  with  the  larger  capital  of  the  monopoly.  We  believe  that  if 
electrical  smelting  shall  become  a  practical  success  that  the  mining 
development  of  the  West  would  advance  very  rapidly.  Water  power 
sites  are  conveniently  situated  to  the  mines  in  most  cases  and  conse- 
quently this  point  is  in  its  favor  to  begin  with.  It  remains  only,  there- 
fore, to  discover  the  most  efficient  manner  of  applying  electricity  in 
the  proper  form  to  work  out  the  problem  of  individual  electric  smelting. 
The  Canadian  Government,  I  understand,  has  devoted  considerable  time 
to_  the  electric  treatment  of  their  ores  and  have  made  liberal  appro- 
priations for  this  purpose,  and  it  would  seem  fit  that  the  National  Bureau 
of  Mines  should  undertake  this  enterprise  in  connection  with  its  research 
work. 

Many  have  suggested  that  the  Bureau  of  Mines  should  investigate 
metallurgical  problems  through  the  mining  schools,  by  increasing  the 


AMERICAN    MINING    CONGRESS  57 

funds  at  the  disposal  of  mining  schools.  We  took  that  under  consider- 
ation and  came  to  the  conclusion  that  at  this  early  stage  in  the  devel- 
opment of  the  Bureau  of  Mines,  it  would  dissipate  results  if  the  small 
appropriation  now  granted  by  Congress  for  the  work  of  the  Bureau 
of  Mines  should  be  distributed  among  the  number  of  mining  schools 
which  now  exist.  I  believe  there  is  a  time  coming  when  the  appropria- 
tions will  be  forthcoming  from  Congress  to  assist  in  that  work,  and  I 
think  it  will  be  an  important  extension  of  the  scope  of  the  Bureau  of 
Mines,  but  in  its  infancy  I  believe  the  concentration,  both  of  capital 
and  of  responsibility  in  the  matter  of  research,  is  essential  to  the  achieve- 
ment of  results. 

Another  solution  that  has  been  offered  by  many  individuals  con- 
nected with  mining  is  that  the  Government  maintain  free  assay  offices 
for  the  purpose  of  fostering  mining  development.  We  took  that 
under  advisement  and  came  to  the  conclusion  that  the  profession  at 
the  present  time  is  able  to  take  care  of  this  contingency,  and  that  all 
we  need  to  do  to  insure  that  the  assayer  and  technical  graduate  wins 
success  for  the  public,  is  that  he  wins  protection  from  the  state.  There 
are  no  states,  to  my  knowledge,  that  require  a  license  for  the  practice 
of  assaying.  For  the  technical  graduate  to  compete  with  the  many 
people  that  have  picked  up  a  smattering  of  assaying  here  and  there 
seems  not  only  unfair  to  the  profession,  but  on  the  other  hand  abso- 
lutely unjust  to  the  public,  and  it  is  through  this  cause  that  we  find  most 
of  the  complaint  coming  from  the  people.  Assaying  is  done  by  men 
not  qualified  and  not  equipped  to  do  the  work,  and  I  think  that  if  each 
state  will  pass  regulations  of  its  own  providing  that  an  examination 
is  necessary  in  order  to  win  the  license,  so  that  they  shall  have  sufficient 
technical  qualifications  to  pass  on  ores  and  render  their  reports,  the 
whole  problem  will  be  taken  care  of  without  the  use  of  the  funds  of 
the  Bureau  of  Mines.  It  strikes  me  it  is  a  detail  for  the  people  to  work 
out  in  their  various  states  and  not  a  subject  that  would  come  under 
the  attention,  because  of  its  details,  of  the  Bureau  of  Mines  itself.  If 
such  legislation  were  passed  it  not  only  protects  the  investor  from  the 
standpoint  of  winning  the  best  technical  results,  but  also  you  will  find 
that  the  dishonesty  which  creeps  into  assays  and  analytical  reports  does 
not  come  from  the  technical  man — it  comes  largely  from  the  assayer's 
ignorance  of  the  subject,  and  also  from  weakness  of  character.  But 
the  man  who  has  the  character  to  survive  a  technical  training  has  a 
great  deal  more  opportunity  to  come  into  the  field  with  an  accurate 
knowledge  of  his  subjects,  and  with  more  incentive  for  giving  truthful 
assays  because  of  the  fact  that  his  future  reputation  depends  upon  it, 
while  the  other  man  has  no  future  to  look  to  and  no  reputation  to  lose, 
so  far  as  his  profession  goes. 

I  would  recommend  therefore  that  resolutions  be  adopted  as  broad 
and  comprehensive  as  possible  to  suggest  that  the  consensus  of  opinion 
of  this  American  Mining  Congress  be  to  prevent  accident  contingency 
in  metal  mines  and  to  investigate  economic  problems  in  milling  and 
metallurgy,  and  especially  under  that  head,  electric  smelting.  I  thank 
you.  (Applause.) 

THE  PRESIDENT:     The  Secretary  will  make  an  announcement. 

SECRETARY  CALLBREATH:  I  desire  to  say,  Mr.  President, 
that  tomorrow  morning  the  session  will  be  occupied  by  consideration 
of  the  report  of  the  Committee  on  the  General  Revision  of  Mineral 
Land  Laws.  This  is  a  very  important  subject.  It  was  to  have  been 
presented  to  you  by  ex-Governor  Charles  S.  Thomas,  of  Colorado,  but 
he  at  the  last  moment  wired  that  a  case  coming  up  in  the  Supreme  Court 
would  prevent  his  attendance.  I  am  very  much  gratified  at  the  discus- 
sion today.  I  think  it  is  much  more  profitable  than  the  set  addresses 
which  we  had  expected.  I  hope  that  a  similar  discussion  will  take  place 
tomorrow. 

THE  PRESIDENT:  The  report  of  the  Committee  on  the  General 
Revision  of  Mineral  Land  Laws  will  be  made  tomorrow  morning  by 


58  OFFICIAL    PROCEEDINGS 

Mr.  John  R.  Steele,  of  Alaska.  We  have  one  more  committee  to  report 
and  that  is  the  report  of  the  Committee  on  Forestry  Relations  by  F.  A. 
Silcox,  U.  S.  District  Forester  of  Missoula,  Montana. 

MR.  SILCOX:     I  did  not  understand  that  I  was  on  that  committee. 

SECRETARY  CALLBREATH:  May  I  make  an  explanation,  Mr. 
Chairman?  Mr.  T.  J.  Grier,  of  Lead,  South  Dakota,  was  chairman  of 
the  Committee  on  Forestry  Relations.  Mr.  Grier  has  been  ill  for  some 
time  and  he  has  been  unable  to  prepare  a  report.  Mr.  Graves,  the  Chief 
Forester  of  the  United  States,  has  prepared  and  sent  to  us  a  paper  for 
presentation  to  the  convention.  Whether  it  shall  be  read  or  whether 
it  would  be  better  to  be  read  by  title  and  published  in  the  proceedings 
so  that  all  can  see  it  is  a  question  for  this  association  to  decide.  Mr. 
Silcox,  District  Forester  for  the  Montana  District,  has  been  sent  here 
by  Mr.  Graves  to  talk  over  this  matter  in  case  there  is  any  discussion 
and  to  explain  anything  needing  explanation.  I  would  suggest  that  the 
convention  decide  whether  to  have  this  paper  read  by  Mr.  Silcox  or 
printed  in  the  proceedings. 

COL.  PERKINS:  How  can  we  discuss  it  if  we  haven't  heard  the 
paper.  I  think  that  Mr.  Silcox  should  read  it,  so  that  we  will  be  enabled 
to  discuss  it  intelligently. 

THE  PRESIDENT:     What  is  your  wish,  gentlemen? 

MR.  ROBERT  NEILL:  I  make  a  motion  that  we  have  it  pub- 
lished and  discuss  the  question  afterwards. 

THE  SECRETARY:  Probably  it  would  be  well  to  read  the  letter 
from  Mr.  Graves  concerning  it. 

THE  PRESIDENT:  Read  that,  and  I  will  hold  the  motion  in 
abeyance  until  that  time. 

The  Secretary  then  read  Mr.  Graves'  letter,  as  follows: 

United  States   Department  of  Agriculture,   Forest  Service, 

Salt  Lake  City,  Nov.  11,   1912. 

Dear  Mr.  Callbreath: — In  accordance  with  my  promise  I  am  send- 
ing you  a  paper  ''The  National  Forests  and  the  Development  of  Natural 
Resources."  This  has  been  suggested  by  the  points  mentioned  in  the 
official  call  of  the  Mining  Congress.  If  compatible  with  your  rules,  I 
would  suggest  that  this  paper  be  incorporated  in  the  records  of  the 
Congress.  I  am  very  sorry  that  I  cannot  be  present  to  address  the 
Congress.  I  should  like  very  much,  however,  to  have  aerepresentative 
of  the  Forest  Service  attend  in  order  that  he  may  assist  so  far  as 
possible  in  reaching  the  very  desirable  end  of  mutual  co-operation  in 
the  problems  on  the  National  Forests  which  touch  the  mining  industry. 
I  have  suggested  in  my  paper  that  there  be  brought  about  the  same 
kind  of  co-operation  that  we  have  with  the  stockmen,  lumbermen  and 
others  who  use  the  Forests.  In  grazing  we  have  a  regularly  organized 
plan  of  co-operation  with  the  local  stock  associations.  While  the  min- 
ing industry  does  not  present  the  same  ease  of  reaching  organized 
bodies  of  users,  I  do  not  see  why  through  the  mining  congress  or  local 
congresses,  we  can  not  reach  the  same  end.  I  have  delegated  Mr.  F.  S. 
Silcox,  District  Forester  of  District  1,  at  Missoula,  Montana,  to  repre- 
sent the  Forest  Service  at  the  Mining  Congress.  He  will  call  on  you 
there  and  I  hope  that  you  will  discuss  with  him  not  only  the  situation 
on  the  National  Forests  of  Idaho  and  Montana  under  his  charge,  but 
also  the  way  we  are  working  out  our  local  problems  to  secure  the 
co-operation  of  local  ranchers,  stockmen,  lumbermen  and  miners. 

Very  sincerely  yours,  H.  S.  GRAVES. 

MR.  ROBERT  NEILL:  Mr.  President,  right  now  I  would  like  to 
state  that  it  might  be  dangerous  to  have  that  inserted  in  our  records 
without  knowing  what  it  is  and  I  withdraw  my  motion.  I  believe 
that  we  should  know  beforehand  what  goes  into  the  record. 

MR.  E.  D.  SPAULDING,  (Spokane):  I  move,  Mr.  President,  that 
we  have  the  paper  read  now,  and  the  discussion  entered  into  with  Mr. 
Silcox. 

The  motion  was  duly  seconded  and  carried. 


AMERICAN    MINING    CONGRESS  59 

MR.  SILCOX:  I  would  like  to  say  that  while  I  am  here,  I  would 
like  to  be  at  the  service  of  the  Committee  of  Forestry  Relations.  I 
would  like  to  go  over  with  them  the  procedure  and  the  policy  underly- 
ing the  work,  and  I  would  be  very  glad  to  meet  the  men  of  that  com- 
mittee and  be  at  their  service. 

Mr.  Silcox  then  read  Mr.  Graves'  paper,  which  will  be  found  on 
page  145  of  this  report. 

MR.  CLARK  DAVIS  (Katalla,  Alaska):  Mr.  Chairman,  I  would 
like  to  move  that  the  report  be  accepted  and  laid  on  the  table. 

THE  PRESIDENT:  You  have  heard  the  motion,  are  there  any 
remarks? 

MR.  ROBERT  NEILL:  I  just  want  to  make  a  remark.  I  am  doing 
some  hydraulic  mining  down  in  the  forest  reserve  in  Idaho.  I  certainly 
don't  want  to  say  anything  that  will  prejudice  my  operations  there,  but 
will  say  frankly — 

MR.  H.  H.  SCHWARTZ,  (Portland,  Oregon):  I  rise  to  a  point 
of  order. 

THE  PRESIDENT:     State  the  point  of  order. 

MR.  SCHWARTZ:  I  make  the  point  of  order  that  the  question 
is  not  debatable. 

THE  PRESIDENT:  Your  point  is  well  taken.  The  motion  to  lay 
on  the  table  is  not  debatable. 

MR.  ROBERT  NEILL:  It  is  a  good  shot.  I  am  with  you.  I  just 
want  to  make  a  statement.  I  am  not  going  to  ask  you  anything  about 
that.  I  just  want  to  know  about  that  motion. 

THE  PRESIDENT:  I  overlooked  that  point.  All  in  favor  of  this 
motion  rise  to  their  feet,  and  remain  standing  until  the  Secretary 
counts  you. 

MR.  C.  S.  JOHNSON,   (Ohio):    What  is  the  motion? 

THE  PRESIDENT:  The  motion  is  to  place  the  report  of  this 
committee  on  the  table. 

SECRETARY  CALLBREATH:  Mr.  Chairman,  may  I  state,  there 
seems  to  be  a  misapprehension.  This  is  not  a  report  of  the  committee. 
It  is  a  paper  which  was  presented  and  read  before  the  convention. 

MR.  GALIGER,  (Washington):  Mr.  Chairman,  I  rise  to  a  point 
of  order.  At  this  time  there  is  no  report  of  any  committee  before  the 
house. 

THE   PRESIDENT:    Your  point  is  well  taken. 

MR.  GALIGER:  I  desire  to  make  a  motion.  I  move  you,  Mr. 
Chairman,  that  the  paper  be  received  and  placed  on  file. 

THE  PRESIDENT:  This  motion  is  not  in  order.  This  paper  is 
presented  by  the  Forestry  Service.  It  must  of  necessity  become  a  part 
of  the  proceedings  of  this  convention. 

MR.  SCHWARTZ:  In  view  of  the  rule,  I  think  this  paper,  pre- 
pared by  the  head  of  the  Forestry  Department,  with  the  aid  of  his 
assistants,  is  therefore  to  be  made  a  part  of  the  records  of  the  Mining 
Congress,  and  circulated  broadcast  throughout  the  United  States  with- 
out an  opportunity  on  the  part  of  those  who  are  better  informed 
upon  the  subject  to  prepare  proper  answers  to  the  arguments  he  has 
advanced.  I  will  state  frankly  that  I  am  not  prepared  to  discuss  the 
question,  and  from  a  Mining  Congress  standpoint  it  appears  to  me 
offhand,  at  least,  it  seems  so  to  me,  I  am  open  to  conviction — that  it 
should  not  be  printed  in  our  proceedings,  and  if  the  Chair  is  going  to 
rule  that  it  is  a  part  of  the  records  and  is  to  be  printed,  then  it  seems 
to  me  that  this  matter  should  be  postponed  for  full  and  free  discus- 
sion, for  I  believe  there  is  not  a  question  that  is  coming  before  this 
Congress,  as  important  to  the  people  of  this  Northwest,  and  all  the 
people  of  the  country,  as  this  question  of  the  public  lands.  (Applause.) 
The  State  of  Washington  with  27  per  cent  as  I  understand  it  of  its  vast 
areas  tied  up  in  forest  reserves,  is  vitally  interested  in  this  question. 
Forty  per  cent,  the  gentleman  says,  but  there  is  not,  as  I  say,  a  more 
important  question.  I  am  not  posted  sufficiently  to  discuss  this  ques- 
tion, or  its  effect  upon  the  great  territory  of  Alaska,  in  which  we  are 


60  OFFICIAL    PROCEEDINGS 

all  vitally  interested,  and  for  one  I  am  most  emphatically  opposed  to 
printing  this  document. 

THE  PRESIDENT:  We  will  entertain  a  motion  that  it  shall  not 
be  printed  in  the  proceedings. 

MR.  CLARK  DAVIS:  I  want  to  explain  my  motion.  I  am  satis- 
fied that  the  man  who  wrote  that  paper  didn't  know  what  he  was 
talking  about.  The  paper  is  full  of  misstatements.  I  speak  out  of  my 
own  experience. 

I  stand  on  the  point  of  order.  The  motion  was  to  receive  the 
paper.  I  say  that  we  receive  it  and  that  we  lay  it  upon  the  table.  It 
has  been  read.  We  have  all  had  the  benefit  of  his  views  and  his  state- 
ments, but  it  does  not  follow,  Mr.  Chairman,  that  we  shall  pay  the 
postage  and  send  thousands  and  thousands  broadcast  out  over  the 
country.  They  have  been  prepared  by  an  expert  and  they  represent 
an  expert's  view,  in  which  he  differs  from  us.  There  are  so  many 
things  that  are  not  germane  to  the  question  in  this  address  that  I 
made  the  motion  to  lay  it  upon  the  table  simply  to  avoid  what  to  most 
of  us  must  appear  as  an  unnecessary  discussion  at  this  time.  There  is 
not  even  a  suggestion  of  any  disrespect  for  the  paper,  the  logic  in  it  is 
great.  It  is  simply  that  we  shall  receive  it  and  lay  it  upon  the  table  as 
it  is  done  time  and  time  again,  when  a  voluminous  document  comes  in 
for  discussion. 

THE  PRESIDENT:  If  the  gentleman  who  has  made  the  motion, 
will  permit  it,  I  will  rule  that  we  take  this  matter  up  in  the  morning 
for  discussion,  and  if  you  do  not  want  it  to  appear  in  the  proceedings, 
you  can  say  so  then.  It  is  time  that  we  adjourned  in  order  to  allow 
the  house  to  be  prepared  for  the  evening  session.  I  don't  mean  to  shut 
off  debate  on  this  subject  at  all,  nor  yet  to  make  any  arbitrary  rulings 
in  the  matter,  but  if  you  will  let  it  remain  in  this  shape,  we  can  take 
it  up  and  discuss  it  as  the  Congress  may  desire. 

MR.  GALIGER:  Will  you  consider  a  motion  of  any  kind  in  this 
connection  at  this  time? 

THE  PRESIDENT:  I  would  probably  have  to,  but  I  would  rather 
wait  until  morning.  What  is  your  motion? 

MR.  GALIGER:  I  was  going  to  suggest  that  we  make  this  a 
special  order  of  business  for  the  morning.  Now,  in  making  the  motion 
which  I  did,  to  receive  this  communication  and  place  it  on  file,  I  be- 
lieve that  that  would  cover  these  other  questions.  I  agree  with  the 
gentleman  across  the  room,  I  don't  believe  that  the  man  who  wrote 
this  paper  knew  a  great  deal  about  the  subject  and  this  is  a  matter  of 
vital  importance  for  each  and  every  one  of  us.  I  was  very  willing  to 
bury  it  as  far  as  I  am  concerned  and  yet  it  is  a  matter  that  requires 
discussion  and  a  great  deal  of  thought  and  at  this  time  I  would  like 
to  make  a  motion  that  this  matter  be  made  a  special  order  of  business 
for  the  morning  session.  Let  us  discuss  it  thoroughly. 

THE  PRESIDENT:  I  will  entertain  a  motion  of  that  kind  be- 
cause in  every  congress  that  I  have  attended  this  matter  has  come  up 
and  I  don't  believe  that  we  ought  to  discourage  discussion  on  this 
subject,  and  yet  I  don't  believe  we  have  time  now  to  enter  into  it. 

MR.  GALIGER:    Then,  I  make  that  as  a  motion. 

The  motion  was  duly  seconded   and  carried. 

THE  PRESIDENT:  The  first  thing  in  the  morning,  we  will  take 
it  up. 

MR.  H.  H.  SCHWARTZ:  Now  that  the  matter  is  to  be  discussed, 
does  it  necessarily  mean  that  it  becomes  a  part  of  the  records  pub- 
lished by  this  association? 

THE  PRESIDENT:    Not   if  the  association   decides  otherwise. 

Upon  motion  duly  made  and  seconded  an  adjournment  was  taken 
until  8  o'clock  p.  m. 


AMERICAN    MINING    CONGRESS  61 

WEDNESDAY,  NOV.  27,  1912. 
Morning  Session. 

Meeting  called  to  order  by   President  Taylor  at  10:40  a.  m. 

THE  PRESIDENT:  The  first  thing  in  order  will  be  the  presen- 
tation of  resolutions. 

MR.  H.  H.  SCHWARTZ,  (Oregon):  I  have  a  resolution  here 
which  was  held  tentatively  for  the  consideration  of  a  committee  which 
didn't  report  to  this  Congress  and  consequently  the  resolution  has 
not  been  previously  presented.  I  would  like  it  read  and  referred  to  the 
Committee  on  Resolutions. 

COLONEL  W.  T.  PERKINS:  Mr.  Chairman,  I  offer  a  resolution 
which  I  have  laid  on  the  Secretary's  desk. 

SECRETARY  CALLBREATH:  I  beg  the  convention's  pardon  for 
not  having  these  resolutions  in  shape  but  I  will  read  them. 

Resolution   No.  9,   Introduced  by   Robert   Neil,   Idaho. 

Whereas,  More  than  one  thousand  coal  claims  located  in 
Alaska  prior  to  the  withdrawal  order  of  November  12,  1906,  over 
three  hundred  of  which  claims  have  been  surveyed  at  the  expense 
of  the  claimants  and  applications  filed  in  the  Juneau  Land  Office 
for  patents  to  the  same;  and 

Whereas,  More  than  $350,000  has  been  paid  by  coal  claimants 
into  the  Treasury  of  the  United  States,  which  money  is  still  re- 
tained by  the  government,  yet  not  a  single  patent  has  been  issued 
and  final  action  has  been  taken  upon  only  one  group;  and 

Whereas,  Many  applications  have  been  pending  before  the 
Land  Office  for  five  and  six  years,  without  any  charges  having  been 
filed,  although  the  government  has  received  payment  for  the  land 
from  such  coal  claimants  more  than  four  years  ago;  and 

Whereas,  In  view  of  the  declaration  of  the  present  Secretary 
of  the  Interior,  made  before  the  Committees  of  Congress,  during 
the  present  year,  that  upon  the  existing  record  he  would  refuse  to 
issue  patents  to  any  coal  lands  in  Alaska,  and  in  view  of  certain 
recent  rulings  of  the  Secretary  of  the  Interior  in  the  interpretation 
of  the  coal  land  laws  of  Alaska,  especially  with  reference  to  the 
requirements  for  opening  and  improving  coal  mines  and  because  of 
the  extreme  situation  presented  in  Alaska,  it  is 

Resolved,  That  we,  the  American  Mining  Congress,  urgently 
recommend  to  the  Congress  of  the  United  States  the  enactment  of 
a  law  authorizing  claimants  to  coal  lands  in  Alaska  located  prior  to 
November  12,  1906,  to  maintain  an  action  in  the  Federal  Courts  of 
Alaska  against  the  United  States  to  determine  in  such  courts  the 
validity  of  their  respective  claims,  subject  to  the  right  of  all  parties 
to  appeal  from  any  such  judgment  to  the  Circuit  Court  of  Appeals 
and  to  the  Supreme  Court  of  the  United  States,  and  that  any  final 
judgment  so  rendered  shall  be  conclusive  of  the  rights  of  the  parties, 
thereby  cancelling  such  claims  as  may  be  adjudged  invalid,  and 
requiring  the  issuance  of  patents  to  any  claimants  in  whose  favor 
judgment  may  be  finally  rendered. 

Resolution  No.   10,  Introduced  by  F.  H.  Stanard. 

Whereas,  The  Mt.  Olympus  National  Monument  reserve,  of 
over  600,000  acres,  entirely  within  the  Olympic  National  Forest,  in 
the  State  of  Washington,  does  not,  in  our  opinion,  serve  any  useful 
purpose,  as  of  itself  it  affords  no  protection  to  the  elk  which  are 
now  protected  by  state  law,  while  prospecting  and  mining  are 
absolutely  prohibited  within  its  borders,  and  the  region  is  believed 
to  possess  mineral  wealth  worthy  of  exploration;  therefore,  be  it 

Resolved,  That  the  American  Mining  Congress  favors  the 
suggestion  that  the  said  Mt.  Olympus  National  Monument  be 
abolished,  and  its  area  restored  to  the  Olympic  National  Forest 


62  OFFICIAL    PROCEEDINGS 

which   will   amply  protect   the   scenic   value   of  the   region   without 
prohibiting   prospecting  and   mining. 

Resolution  No.  11,  Introduced  by  H.  H.  Schwartz,  Portland,  Oregon. 

Whereas,  the  Executive  Department  of  the  United  States 
Government  has  from  time  to  time  withdrawn  from  entry  a  very 
considerable  portion  of  the  remaining  public  domain  for  purpose  of 
permanent  reservation  or  classification,  with  a  view  of  securing 
legislation  from  Congress,  including  forest,  mineral  and  agricul- 
tural lands,  and 

Whereas,  These  withdrawals  are  avowedly  made  upon  execu- 
tive and  departmental  conviction  that  the  existing  laws  of  Congress 
in  relation  to  the  disposition  of  public  lands  are  unwise,  and  that 
new  laws  meeting  Executive  or  Departmental  approval  should  be 
passed,  and 

Whereas,  Thousands  of  citizens  have  initiated  or  perfected 
claims  to  title  to  such  withdrawn  lands  prior  to  the  Executive  with- 
drawal thereof,  and  have  initiated  or  perfected  such  claims  to  title 
under  existing  laws;  and 

Whereas,  such  existing  claims  so  perfected  or  made  prior  to 
the  various  withdrawals  are  adverse  and  antagonistic  to  Executive 
and  Departmental  belief  as  to  the  best  use  to  which  such  lands 
should  be  put,  and 

Whereas,  The  laws  and  Executive  orders  of  withdrawal  provide 
that  upon  the  Departmental  rejection  or  cancellation  of  any  such 
existing  private  claims  the  lands  thereby,  by  reason  of  such  re- 
jection, become  subject  to  and  available  for  the  uses  and  purposes 
of  such  Executive  or  Departmental  withdrawals;  and 

Whereas,  Great  controversy,  complaint  and  Departmental  liti- 
gation has  resulted  by  reason  of  the  Departmental  investigation, 
adjudication  and  cancellation  of  such  private  entries  and  claims;  or 
in  delay  in  final  action  and  because  of  long  continued  suspension  of 
such  claims,  and 

Whereas,  There  is  widespread  conviction  among  such  private 
claimants  and  entrymen  that  the  Executive  Departments,  in  ad- 
judicating the  rights  of  claimants,  have  not  in  all  instances  been 
successful  in  ignoring  the  Departmental  policy  and  belief  that  pres- 
ent legislation  is  unwise  and  rights  granted  thereunder  are  im- 
provident and  inimical  to  the  uses  to  which  the  Department  believes 
the  land  can  best  be  put,  and 

Whereas,  it  is  a  fundamental  proposition  in  law  and  natural 
equity  that  no  person,  officer  or  judge  should  have  an  interest  or 
bias  which  could  be  aided  or  gratified  by  a  decision  rendered  by 
himself  in  determining  the  liberty  or  property  rights  of  another,  and 

Whereas,  The  present  Commissioner  of  the  General  Land 
Office  is  considering  his  general  jurisdiction  in  adjudicating  ques- 
tions affecting  the  right  of  persons  generally  to  acquire  title  to 
public  lands,  stated  on  page  20  of  his  annual  report  for  the  fiscal 
year  ending  June  30,  1911: 

"It  is  impossible  for  the  Commissioner  and  his  assistant  to 
pay  the  judicial  attention  to  these  cases  which  they  should  receive. 
The  bar  practicing  before  this  office  has  very  little  opportunity  to 
submit  its  cases  directly  to  those  who  are  by  law  responsible  for  the 
decisions,  because  of  the  multitudinous  duties  placed  on  these  offi- 
cers. The  head  of  the  office  cannot  find  time  to  give  individual 
attention  to  many  of  the  most  important  cases  which  are  submitted 
for  his  consideration,"  and 

Whereas,  The  Secretary  of  the  Interior  has  numerous  bureaus 
and  manifold  duties  requiring  his  attention;  and  in  his  report  to 
Congress  under  date  of  February  13,  1912,  on  H.  R.  18235,  in  speak* 
ing  of  the  single  subject  of  appeals  to  him  from  the  decisions  of 
the  Commissioner  of  the  General  Land  Office,  said: 


AMERICAN    MINING    CONGRESS  63 

"During  the  past  two  months,  as  an  example,  an  average  of 
over  200  cases  per  month  have  been  decided  in  the  Department  on 
appeal  from  the  General  Land  Office." 

Which  statement  demonstrates  the  physical  impossibility  of 
the  Secretary  or  his  assistant  secretary  giving  personal  attention  to 
the  real  merits  of  the  individual  cases,  and 

Whereas,  The  investigating  agents  and  many  of  the  witnesses 
used  by  the  Secretary  of  the  Interior  in  the  preparation  of  adverse 
reports  and  the  introduction  and  giving  of  evidence  upon  which  the 
Department  must  rely  in  cancelling  existing  private  entries  are  his 
own  appointees  and  employees  in  whom  he  necessarily  must  place 
great  faith  and  reliance,  while  the  witnesses  for  the  private  entry- 
men  and  claimants  are  either  unknown  to  him,  or  by  reason  of  their 
residence  in  the  vicinity  of  the  public  lands,  frequently  are  them- 
selves claimants  to  like  lands,  and 

Whereas,  final  decision  of  the  General  Land  Office  of  the  In- 
terior Department  is  rendered  in  Washington,  several  thousand 
miles  from  the  land  and  residence  of  the  claimants,  and 

Whereas,  Under  existing  law  the  decision  of  the  Interior  De- 
partment cancelling  an  entry  or  claim  upon  questions  of  fact  is 
final  and  cannot  be  reviewed  by  the  Courts,  and 

W7hereas,  We  believe  that  in  all  cases  wherein  the  Executive 
Department  has  withdrawn  lands  for  a  use  or  purpose  adverse  or 
inconsistent  with  the  existing  private  entry  of  a  citizen,  it  is  fair 
and  just  that  such  citizen  may  have  his  rights  and  the  facts  in  the 
case  determined  in  the  Courts  and  not  in  the  Executive  Department; 
and,  also,  that  such  citizen  may  secure  action  in  the  courts  when- 
ever his  application  is  for  any  reason  so  delayed  in  the  Department 
as  to  amount  to  a  practical  rejection  thereof. 

Now,  therefore,  be  it  Resolved,  That  the  American  Mining 
Congress  favors  legislation  conferring  jurisdiction  upon  the  proper 
United  States  district  courts  to  entertain  suits,  at  the  instance  of 
any  person  in  interest,  and  determine  the  law  and  fact  de  novo  and 
render  final  decision,  in  all  cases  involving  the  claim  or  right  to 
possession,  occupation,  title,  or  right  to  acquire  title  to  any  non- 
mineral  or  mineral  lands  under  the  mining  or  other  public  land 
laws,  wherein  it  shall  be  made  to  appear: 

1st.  That  such  claim  or  right  shall  have  been  finally  rejected 
by  the  Secretary  of  Interior  or  other  proper  final  Executive  au- 
thority and  the  land  involved  shall  be  at  date  of  such  rejection  or 
within  thirty  days  thereafter  within  any  permanent  or  temporary 
reservation,  or  executive  order  of  withdrawal  or  under  suspension 
from  disposition  under  the  public  land  laws,  mineral  or  non- 
mineral;  or 

2nd.  That  such  claim  or  right  shall  have  been  finally  rejected 
by  the  Secretary  of  the  Interior  or  other  proper  final  executive  au- 
thority, and  such  rejection  shall  be  based  in  whole  or  in  part,  upon 
a  finding  as  to  the  mineral  or  non-mineral  character  of  the  land;  or 

3rd.  That  any  final  application  to  purchase,  enter  or  otherwise 
acquire  title,  or  to  acquire  a  right  to  occupancy  or  possession  under 
such  claim  or  right,  shall  have  been  pending  before  the  Interior  De- 
partment, or  other  proper  department,  bureau  or  officer,  for  a  period 
of  two  years  without  final  action  and  free  from  any  bona  fide  pri- 
vate contest. 

Provided,  Jurisdiction  under  this  act  shall  not  extend  to  final 
decisions  awarding  the  land  to  a  private  contestant  upon  contest 
not  putting  in  issue  the  mineral  or  non-mineral  character  of  the 
land;  and  such  suit  shall  not  be  filed  after  one  year  from  notice  of 
final  rejection  of  the  claim  or  right,  nor  shall  any  suit  invalidate 
intervening  adverse  rights  unless  notice  of  intention  to  file  suit  shall 
have  been  filed  in  the  proper  local  land  office  within  sixty  days  of 
notice  of  such  final  rejection. 


64  OFFICIAL    PROCEEDINGS 

Resolution  No.  11-a,  Introduced  by  Col.  Wm.  T.  Perkins,  Seattle, 

Wash. 

Resolved,  That  we  recommend  to  the  Congress  of  the  United 
States  the  passage  of  the  necessary  legislation  to  secure  the  same 
charges  for  the  assaying  of  gold  in  the  United  States  Assay  Offices 
of  the  West  and  on  the  Pacific  Coast,  as  now  prevail  at  the  United 
Assay  Office  in  New  York,  thus  placing  both  the  East  and  West 
on  the  same  basis. 

Resolution  No.  12,  Introduced  by  C.  A.  Stewart,  Idaho. 

Whereas,  A  knowledge  of  the  geology  of  a  State  is  essential 
to  the  wisest  and  most  profitable  development  of  its  resources,  both 
mining  and  agricultural;  and 

Whereas,  Experience  has  shown  that  such  geological  knowl- 
edge is  best  gathered  and  disseminated  by  a  State  Geological  Sur- 
vey, for  most  States  have  long  found  it  profitable  to  maintain  such 
organizations;  and 

Whereas,  There  is  at  present  a  strong  demand  for  more  geolog- 
ical knowledge  of  the  State  of  Idaho;  be  it 

Resolved,  That  the  Fifteenth  American  Mining  Congress  en- 
dorses the  movement  to  establish  a  State  Geological  Survey  of 
Idaho,  and  respectfully  requests  the  Governor  and  Legislature  of 
that  State  to  give  this  matter  their  serious  consideration. 

MR.  W.  D.  CONRAD,  Montana:  I  have  a  resolution  which  I 
would  like  to  offer  and  have  it  read  and  referred  to  the  Committee  on 
Resolutions. 

Resolution  No.  13,  Introduced  by  W.  G.  Conrad. 

Whereas,  The  increasing  expense  of  courts,  schools,  asylums, 
hospitals,  and  other  State  institutions,  the  building  and  maintenance 
of  roads,  and  the  administration  of  law  over  its  whole  area,  cannot 
be  supported  by  a  tax  levied  upon  less  than  one-half  the  area  of 
the  several  States  without  undue  and  unfair  burden;  and 

Whereas,  The  policy  laid  down  by  Abraham  Lincoln  that  "The 
public  lands  are  an  impermanent  national  possession  held  in  trust 
for  the  maturing  states,"  and  the  liberal  administration  of  laws 
framed  to  make  such  policy  effective  have  worked  great  advantage 
to  the  West  and  to  the  nation;  and 

Whereas,  The  recent  restrictive  administration  of  the  public 
land  laws  and  the  efforts  to  make  more  difficult  the  acquisition  of 
title  to  mineral  and  other  public  lands  in  the  West  have  been  largely 
instrumental  in  preventing  settlement,  in  restricting  development 
and  hampering  the  progress  of  the  mining  industry  and  preventing 
it  from  keeping  pace  with  industrial  advancement  in  other  lines  of 
effort;  and 

Whereas,  The  present  stagnation  in  the  mining  industry  and 
the  fact  that  during  the  last  three  years  over  350,000  people  have 
emigrated  from  the  United  States  to  Canada,  carrying  with  them 
wealth  estimated  at  over  350  millions  of  dollars,  and  that  during 
the  present  year  there  has  been  an  increase  of  ten  per  cent  over  last 
year  in  the  number  of  persons  going  to  Canada,  and  an  increase  of 
fifty  per  cent  in  the  estimated  average  wealth  taken  by  each  indi- 
vidual indicates  that  a  more  liberal  policy  should  be  fostered,  to 
the  end  that  our  own  resources  may  be  developed,  our  own  State 
institutions  supported  and  the  prosperity  of  the  West  be  revived  and 
continued;  and 

Whereas,  The  proposed  policy  for  the  Federal  leasing  of  min- 
eral and  other  lands  will  keep  from  the  State  taxing  power  valuable 
property  which  should  contribute  to  the  support  of  State  institu- 
tions, will  prevent  investment,  restrict  development,  foster  monopoly 
in  the  hands  of  those  who  have  already  acquired  title  to  the  public 
domain  and  make  necessary  a  system  of  Federal  control  and  espion- 


AMERICAN    MINING    CONGRESS  65 

age  subversion  of  free  institutions,  expensive  of  administration  and 
hateful  to  the  principles  of  a  free  people;  therefore,  be  it 

Resolved,  That  we  urge  upon  the  Department  of  the  Interior  of 
the  United  States  that  a  more  liberal  administration  of  our  public 
land  laws  shall  be  inaugurated,  that  we  protest  against  the  adoption 
of  any  system  of  Federal  leasing  of  mineral  and  other  lands,  and 
that  we  pledge  ourselves  to  make  all  reasonable  efforts  to  prevent 
the  adoption  by  Congress  of  any  laws  relating  to  public  lands 
designed  to  restrict  the  development  of  the  West. 

HENRY  S.  VOLKMAR,  Seattle:  I  arranged  yesterday  to  offer  a 
resolution  covering  the  question  which  we  discussed  yesterday.  I  have 
prepared  a  resolution,  but  find  that  the  Committee  on  Resolutions  has 
formally  taken  that  matter  up  in  another  resolution,  so  that  there  will 
be  no  use  of  offering  it  again. 

THE  PRESIDENT:  The  order  of  the  day  is  the  discussion  of 
the  paper  on  Forestry  which  was  given  yesterday  morning.  It  has 
been  suggested  by  a  number  of  delegates  that  this  discussion  be  con- 
fined to  five  minute  periods,  so  that  as  many  as  possible  could  take  part 
in  this  discussion.  The  question  is  now  open  for  discussion. 

MR.  GEORGE  E.  BALDWIN,  Alaska:  Ladies  and  Gentlemen: 
There  is  just  one  phase  of  the  Forester's  paper  that  I  wish  to  discuss. 
His  whole  argument  was  predicated  on  a  theory  that  has  been  utterly 
exploded  way  back  a  quarter  of  a  century  ago.  In  olden  times  an  old 
Wop  wrote  a  book  that  women  had  more  teeth  than  men  and  for  a 
thousand  years  civilized  men  believed  it.  Finally  a  man  came  along 
and  counted  the  number  of  teeth  that  a  man  had  and  found  out  that 
he  had  as  many  teeth  as  a  woman.  There  was  an  old  theory  that  rain- 
fall and  stream  flow  was  affected  by  the  forests  and  for  a  long  time 
that  was  believed  until  Professor  Chittenden  came  along  and  exploded 
that  theory.  Chittenden  destroyed  the  theory  that  forests  affect  the 
rainfall  and  stream  flow.  He  counted  the  teeth.  Professor  Willis  L. 
Moore,  who  had  been  connected  with  the  Signal  Service  and  afterwards 
with  the  Weather  Bureau  for  a  period  of  forty  years,  made  a  report  in 
due  time  based  upon  the  statistics  that  had  been  gathered  by  the 
Weather  Bureau  and  the  Signal  Service  covering  a  period  of  over  fifty 
years,  and  he  said  in  this  report  that  he  went  into  the  investigation  of 
the  question  thoroughly  convinced  that  forests  did  affect  rainfall  and 
stream  flow,  but  after  investigating  the  records  and  completing  them 
he  was  forced  to  the  conclusion  that  they  had  no  effect  whatever.  In 
fact,  he  ridiculed  the  idea  on  a  scientific  basis  that  forests  have  any 
effect  upon  rainfall,  or,  as  far  as  stream  flow  was  concerned,  he  was 
forced  to  the  conclusion  that  the  destruction  of  forests  rather  caused  the 
streams  to  flow  more  regularly,  if  anything. 

Now,  as  far  as  our  streams  in  Alaska  are  concerned,  our  streams 
have  their  sources  in  the  glaciers  and  would  run  for  centuries  without 
a  tree  top  on  our  mountains,  and  in  the  plains  our  rainfall  is  a  hundred 
inches  a  year.  The  creation  of  forest  reserves  there  has  not  benefited 
anybody,  and  I  challenge  the  Forestry  Service  to  show  one  benfit  it 
has  conferred  upon  the  people  who  live  in  these  forest  reserves,  or  the 
people  who  will  live  there  in  the  future.  If  it  did,  it  cost  us  two  dollars 
to  get  one.  It  cost  us  twenty-five  or  fifty  dollars  to  get  a  permit  and  it 
costs  you  in  time  and  labor  a  hundred  dollars  more.  They  put  up  the 
price  of  stumpage  just  to  the  point  where  it  is  a  question  whether  you 
ship  lumber  from  Puget  Sound  or  have  the  local  mills  cut  it.  That  is 
conservation  in  Alaska.  That  is  all  I  wish  to  say  on  this  subject,  and  I 
thank  you.  (Applause.) 

MR.  F.  H.  STANARD,  Washington:  Mr.  President  and  Gen- 
tlemen: I  wish  to  call  your  attention  to  this  map.  The  shaded  portions 
show  the  established  reservations  of  the  State:  Forest,  Indian  and 
Military. 

It  has  been  found  that  these  established  reservations  together  with 
the  remnants  of  the  public  domain  scattered  here  and  there  over  the 


66  OFFICIAL    PROCEEDINGS 

state,  portions  of  land  unfitted  for  economic  development,  make  sixty 
per  cent  of  the  area  of  the  State  of  Washington  that  is  not  taxable. 
If  this  great  wilderness  is  any  part  of  the  State,  our  people  are  paying 
a  heavy  and  unjust  tax  on  every  foot  of  value  inside  these  established 
reservations. 

Last  year  the  State  received  $24,000.00  from  the  Department  of 
Agriculture  from  ten  or  twelve  million  acres  of  forest  reserves.  If  this 
area  had  been  a  part  of  the  Republic  instead  of  a  private  estate  of  some 
chief  forester,  the  taxes  at  ten  cents  per  acre  would  have  been  more  than 
a  million  dollars. 

But  under  present  conditions  these  reservations  are  but  little,  if  any, 
more  a  part  of  this  State  than  is  British  Columbia;  in  the  matter  of 
annexation  the  odds  are  even. 

This  beautiful  city  by  the  falls  is  commercially  known  as  the 
metropolis  of  the  Inland  Empire,  a  neighborhood  of  enterprising  citizens 
surrounded  by  a  real  empire;  reservations  ruled  by  one  individual. 

Cecil  Rhodes  may  have  been  an  empire  builder,  but  he  was  of  little 
consequence  in  comparison  with  Pretorius  Pinchot  at  the  tennis  court  of 
Theodore  the  First. 

This  individual  has  made  a  Siberian  wilderness  of  the  West — a 
feudal  barony  extending  from  the  tropics  to  the  midnight  sun  that  defies 
the  laws  of  the  people  who  made  it  possible. 

This  centralized  government  in  the  Department  of  Agriculture  is 
only  concerned  with  its  own  trespass  laws  and  the  absorption  of  more 
territory. 

It  uses  our  courts  to  prosecute  us  and,  regardless  of  whether  we 
win  or  lose,  we  pay  all  expense.  If  we  try  to  bring  an  agent  of  this 
department  before  the  courts  for  an  infraction  of  our  laws  or  his  own 
rules,  we  are  politely  informed  that  the  king  can  do  no  wrong. 

The  public  land  question  will  continue  to  be  the  curse  of  the  West 
until  Congress  makes  laws  for  the  whole  country  and  the  courts  can 
reach  the  offender  in"  any  department  of  the  government. 

The  people  of  the  United  States  have  handed  the  creators  of  this 
fad  to  the  political  boneyard  and  the  country  to  the  Democrats,  and  if 
this  party  will  work  out  the  public  land  question  as  it  should  be  worked 
out  for  the  benefit  of  the  pioneer  and  the  consumer,  the  Western  States 
of  America  will  join  the  Solid  South.  (Prolonged  applause.) 

MR.  CLARK  DAVIS,  Katalla,  Alaska:  Mr.  Chairman,  Ladies  and 
Gentlemen:  I  am  not  going  to  discuss  the  question  of  conservation  as 
to  its  bearing  on  the  nation.  I  am  not  going  to  discuss  the  question 
of  whether  it  is  a  good  thing  to  have  an  empire  of  hundreds  of  millions 
of  acres  in  a  Republic,  said  empire  controlled  by  one  man  who  is  not 
even  elected  to  his  office  by  the  people.  This  man  creates  his  own  rules 
and  regulations  and  enforces  them,  and  is  not  amenable  in  any  way  to 
the  State  Governments  in  which  this  great  empire  is  situated.  His  prop- 
erty is  not  even  taxable  by  the  States. 

This  empire  is  greater  in  area  than  the  States  of  Maine,  New  Hamp- 
shire, Vermont,  Massachusetts,  Rhode  Island,  Connecticut,  Delaware, 
Maryland,  Virginia,  New  York,  Ohio,  Indiana  and  Illinois. 

I  am  not  here  to  discuss,  however,  that  phase  of  conservation.  I 
am  not  going  to  say  whether  it  is  a  noble  and  modest  thing  for  New 
York,  Massachusetts,  Maine  and  Michigan  and  other  Eastern  States  to 
say  "the  great  West  (meaning  Washington,  Montana,  Idaho,  California 
and  other  public  land  States),  with  its  vast  areas  of  public  lands  with  all 
their  natural  resources  and  timber  and  water  power,  are  ours.  We 
have  exhausted  what  we  had;  we  have  used  up  our  timber  in  building  up 
our  towns,  cities  and  farms;  now  we  are  coming  put  to  this  Western 
land  and  we  inform  you  that  the  public  lands  within  the  boundaries  of 
your  States  belong  to  all  the  people,  and  therefore  we  have  a  monied 
interest  in  them,  and  we  are  going  to  put  it  where  you  cannot  touch  it." 

I'  am  not  going  to  discuss  that  part  of  Mr.  Graves'  paper  where 
he  says  that  the  Western  States  where  these  forest  reserves  exist  are 


AMERICAN    MINING    CONGRESS  67 

demanding,  under  cry  of  State's  rights,  the  control  of  this  property,  so 
that  they  can  turn  it  over  to  private  exploitation.  In  other  words,,  Mr. 
Graves  intimates  that  the  citizens  of  the  West  are  scoundrels  and  not 
to  be  trusted  with  the  administration  of  public  land's  in  their  own  States. 
I  might  say,  in  passing,  however,  that  the  dissipation  of  the  public  lands 
in  the  Western  States  in  the  past  has  not  been  by  the  States  themselves. 
The  land  grants  to  the  Northern  Pacific,  Union  Pacific  and  Southern 
Pacific  Railroads,  wherein  empires  of  land  were  given  away  to  these 
railroads  as  subsidies,  was  through  the  action  of  the  Federal  Congress, 
and  not  through  the  action  of  the  Western  State  Governments.  When 
the  forest  reserves  were  created,  the  railroads  were  given  in  lieu  of  much 
of  their  former  mountainous  land,  and  the  lands  they  owned  in  these 
forest  reserves,  script  and  were  allowed  to  go  outside  of  the  reserves 
and  file  on  the  best  public  lands  that  were  open  at  that  time.  This  was 
by  action  of  the  Federal  Congress,  and  not  by  the  State  Governments. 
The  Federal  Government,  and  not  the  State  Governments,  passed  the 
law  which  enabled  American  citizens  to  acquire  title  to  160  acres  of 
timber  land  by  the  simple  payment  of  $500,  and  thereby  made  it  possible 
for  the  Weyerhausers  and  others  to  acquire  title  to  millions  of  acres  of 
our  best  timber  lands  in  the  West. 

On  the  other  hand,  where  States  in  the  West  have  been  granted 
public  lands  for  educational  and  other  purposes,  the  records  will  show 
that  these  lands  have  been  carefuly  conserved.  In  the  light  of  history, 
Mr.  Graves'  attempt  to  impeach  the  Governments  of  the  Western  States 
falls  to  the  ground. 

What  I  wish  to  speak  directly  about  in  connection  with  this  paper 
is  that  statement  that  it  is  the  business  of  the  officers  of  the  Forest 
Reserve  to  assist  miners  in  securing  title  to  mineral  lands.  I  am  from 
Alaska.  I  am  one  of  the  men  that  Governor  Stubbs  in  a  speech  at 
Minneapolis,  two  years  ago,  alluded  to  as  a  thief,  who  ought  to  be  in 
the  penitentiary.  Thank  God  his  emasculated  political  form  lies  tonight 
on  the  cold  marble  slab  in  the  morgue  of  oblivion.  (Applause  and 
laughter.) 

He  has  followed  Pinchot,  Beveridge  and  Glavis,  and  every  man 
who  has  dared  come  up  and  oppose  the  pioneer  of  the  West  and  brand 
him  as  a  criminal.  (Applause.) 

I  tell  you  there  is  a  sense  of  justice  in  the  hearts  of  Americans, 
East  and  West,  and  when  that  sense  of  justice  is  appealed  to,  the  wrongs 
of  the  West  will  be  righted  by  the  people  of  the  East,  and  don't  you 
forget  it.  (Applause.)  I  am  not  a  feather  bed  pioneer;  I  am  the  man 
who  homesteaded  the  spit  where  Katalla,  Alaska,  is  located.  I  have 
lived  in  that  country  eight  years.  I  have  been  eaten  up  with  gnats  and 
mosquitoes  so  that  the  backs  of  my  hands,  neck,  forehead  and  ears  were 
as  raw  as  a  piece  of  beef.  I  know  what  it  is  to  be  wrecked  at  sea.  1 
know  what  it  is  to  navigate  the  waters  of  Alaska.  The  Government  is 
having  a  little  experience  there  now.  I  know  what  it  is  to  pull  an  oar 
on  the  Bering  River,  both  night  and  day,  until  my  backbone  unraveled  at 
both  ends.  (Laughter.)  I  know  what  it  is  to  live  in  that  hole  away 
from  churches,  away  from  entertainments  of  every  kind,  and  try  to 
make  in  that  country  a  civilization  and  to  build  up  great  industries  at 
the  sacrifice  of  my  time  and  money,  and  social  interests.  I  know  what 
that  means,  and  I  know  what  the  conditions  are  that  the  pioneers  of 
that  district  have  had  to  contend  with,  and  I  want  to  say  that  when 
Mr.  Graves  says  that  the  forestry  service  business  is  to  help  the  honest 
miner  and  help  him  get  his  patents,  that  Mr.  Graves  misrepresents  the 
facts,  or  else  doesn't  know  what  he  is  talking  about.  (Applause.) 

Many  of  us  went  into  that  country  when  there  wasn't  even  a  map 
of  the  district  and  located  our  mineral  claims  in  good  faith.  We  dis- 
covered the  mineral;  we  located  the  claims;  we  developed  them;  we 
spent  hundreds  of  thousands  of  dollars  in  doing  so.  The  1,640  acres 
that  I  am  personally  interested  in  was  purchased  from  the  Government 
after  location  for  $16,400.  In  the  contest  that  has  been  waged  against 


68  OFFICIAL    PROCEEDINGS 

us  to  defeat  us  of  our  rights,  we  expended  another  $10,000,  and  if 
Secretary  of  the  Interior  Fisher  has  his  way,  everyone  of  us  will  be 
wiped  off  the  map  before  the  4th  of  March. 

I  want  to  call  your  attention  to  the  help  we  got  from  the  Forestry 
Service.  Years  after  this  coal  had  been  discovered  and  these  claims 
located,  a  forest  reserve  was  created  covering  an  area  of  three  million 
acres.  There  is  more  merchantable  timber  on  five  good  claims  in  the 
State  of  Washington  than  there  is  in  the  three  million  acres  covered  by 
the  Chugach  Forest  Reserve.  The  only  reason  for  the  creation  of  this 
forest  reserve  was  that  the  Forestry  Department  might  have  a  hand  in 
this  controversy  over  these  coal  titles.  Everybody  knows  that.  What 
did  they  do? 

THE  PRESIDENT:     Time. 

CHORUS:     Go  on,  go  on,  we  will  give  him  our  time. 

THE  PRESIDENT:  A  motion  would  be  in  order  to  extend  the 
time. 

MR.  S.  L.  SHONTS,  Wallace,  Idaho:  I  move  that  the  time  be 
extended  five  minutes. 

MR.  CLARK  DAVIS:  Thank  you,  gentlemen.  I  say  that  I  am 
going  to  talk  about  what  I  know.  If  Mr.  Graves  wants  the  facts  we  can 
furnish  them.  While  the  question  of  claims  in  which  I  am  interested 
was  pending,  the  Forest  Service,  through  Mr.  Langell,  sent  to  Iowa 
and  got  a  professor — Prof.  Hill — from  the  university  there,  to  come 
out  and  examine  our  claims.  Mr.  Langell  was  with  him.  I  entertained 
them  at  Katalla  when  they  arrived.  They  ate  up  my  grub  and  slept  in 
my  bunks  at  the  mine,  with  seven  other  men,  for  over  a  week.  On  their 
way  back  I  entertained  them  again  at  my  home  in  Katalla.  I  said  to 
Mr.  Hill:  "What  do  you  think  of  the  country?"  He  said:  "I  can't 
discuss  that  question  with  you."  You  see,  I  was  a  coal  thief.  I  had  gone 
in  there  when  there  wasn't  a  map  of  the  country,  when  there  wasn't  a 
house  in  that  country  except  an  Indian  village  and  the  English  Com- 
pany's headquarters  at  Chilcatt.  I  had  gone  into  that  country  when 
there  was  a  boat  every  three  months,  when  we  had  to  cross  over  the 
treacherous  bay  with  its  still  more  treacherous  bar,  in  small  boats,  where 
the  Government  has  recently  lost  $50,000  worth  of  supplies,  in  trying  to 

fet  to  Clarence  Cunningham's  coal  lands.  He  had  paid  the  Government 
52,000  for  5,200  acres  of  this  land,  after  he  had  spent  $132,000  in  locating 
and  developing  the  property,  only  to  be  branded  as  an  adventurer  and 
dishonorable  man,  and  his  claims  cancelled. 

Now  we  had  come  in  there  and  we  had  done  that  work,  and  when 
it  came  to  the  question  of  my  title,  the  Forest  Reserve  people  were  on 
deck  and  they  were  active  in  the  prosecution  of  the  charges  against  our 
little  property.  When  it  came  to  securing  testimony,  they  were  busy 
scouring  the  country  to  get  people  to  testify  against  me.  When  it  came 
to  the  investigation,  their  attorney  was  present  at  the  investigation  in 
Seattle,  and  assisted  in  the  prosecution  in  every  possible  way. 

The  attorney  for  the  Forestry  Service  was  the  only  one  who  filed  a 
brief  at  Juneau  against  us,  where  the  evidence  was  submitted,  so  I  say 
here  today,  not  one  iota  of  assistance  did  I,  or  any  of  my  associates,  get 
from  the  Interior  Department  or  the  Forestry  Department  in  the  estab- 
lishment of  our  coal  mines,  or  in  the  securing  of  title  to  coal  land's  in 
Alaska.  On  the  other  hand,  men  were  sent  to  the  ends  of  the  earth  to 
secure  affidavits  from  crooks,  Indians,  ex-jailbirds  and  other  people 
of  disreputable  character,  and  the  testimony  of  these  men  was  procured 
as  evidence  against  me,  while  such  men  as  Thos.  S.  Lippy  and  John 
Schram,  and  other  leading  men  of  the  West,  whose  integrity  and  finan- 
cial standing  had  never  been  questioned,  who  testified  on  their  oath  that 
no  collusion  or  agreement  to  combine  had  ever  been  entered  into  by 
the  claimants  prior  to  location,  were  laughed  out  of  court. 

No  American  citizen  of  fair  mind  will  say  for  one  instant  that  we 
pioneers  of  Alaska  are  not  entitled  to  fair  consideration  from  our  own 
Government.  The  universal  testimony  of  these  pioneers  is  that  w« 


AMERICAN    MINING    CONGRESS  69 

have  not  been  fairly  treated  by  the  Interior  Department,  nor  by  the 
Forestry  Department,  and  no  man  need  be  surprised  that  as  a  conse- 
quence the  Forestry  Department  in  Alaska  is  in  bad  repute  owing  to  its 
attitude  towards  the  miners  in  that  district. 

I  am  talking  by  the  book  this  morning.  I  have  strong  feelings  in 
this  matter.  All  men  in  Alaska  have.  You  talk  about  opening  up 
Alaska.  We  had  Alaska  opened  up,  and  if  we  had  had  the  support  of 
the  Interior  Department  and  Forestry  Department,  we  would  have  been 
shipping  coal  today,  not  only  to  Alaska  ports,  but  to  the  ports  on  the 
Pacific  Coast  and  to  the  Government  Navy  Yard.  We  would  have  been 
furnishing  a  high  grade  coal  to  the  Government  at  Bremerton  and  to 
ports  along  the  coast  at  $5.00  a  ton,  and  making  money. 

If  the  Government  gave  us  our  patents  today,  it  would  take  us  two 
years  to  get  back  to  the  point  where  we  were  in  1907  in  the  develop- 
ment of  Alaska.  , 

There  is  no  doubt  but  that  we  are  being  unfairly  treated.  Mr. 
Fisher  says  that  out  of  1,125  claims  not  one  is  honest.  Do  you  believe 
it?  What  is  the  reason  all  at  once  it  is  discovered  that  men  in  the  West 
are  all  dishonest?  Because  of  a  few  fakirs  in  the  East  who  want  to 
reverse  the  land  policy  of  this  nation,  to  turn  it  over  to  bureaus  at 
Washington  to  lease  to  the  people  of  the  West,  and  thus  make  serfs 
out  of  us  all.  Will  the  men  of  the  West  and  the  East  stand  for  this? 
I  do  not  believe  it.  (Applause.) 

THE  PRESIDENT:  Any  other  remarks?  We  have  five  minutes 
yet. 

MR.  ROBERT  NEILL,  (Florence  Idaho):  Just  one  minute.  Now 
the  paper  that  was  read  yesterday  flatly  says  that  the  prospector  and 
miner  is  not  charged  for  timber.  I  say  I  have  been  placer  mining  and 
quartz  mining  and  when  I  wasn't  doing  that  I  was  on  the  drill,  and  if 
I  live  twice  as  long  as  I  have  been  at  that  I  will  be  well  along  in  years. 
I  went  down  into  old  Florence,  known  to  be  one  of  the  great  placer 
camps  of  the  world.  More  money  has  been  taken  out  of  Florence 
according  to  the  gravel  handled  than  any  other  placer  camp  in  the 
world.  You  turn  to  your  government  statistics  and  they  show  that  from 
'61  to  '69  there  was  over  one  hundred  and  thirty  millions  of  money  taken 
out  of  old  Florence.  It  was  done  when  the  Indians  were  bad,  when 
living  was  high,  no  transportation.  Everything  that  came  into  that 
country  came  on  pack  trains,  pack  trains  and  pack  trails.  There  wasn't 
a  wagon  road  into  that  country  until  1894.  The  placer  miners  saw  that 
they  had  worked  out  their  claims.  Under  the  act  of  72,  we  take  twenty 
acres  in  that  country.  The  result  was  that  it  was  not  practical  for  men 
to  attempt  to  buy  up  those  placer  claims  in  those  days  and  establish 
hydraulic  works,  dredge  works  and  works  of  that  kind  on  a  large 
scale.  So  it  was  up  to  the  miner  to  rock  or  shovel  into  the  sluice. 
Consequently,  when  that  process  ended  they  abandoned  that  country 
and  for  fifty  years  it  has  been  virtually  an  abandoned  country. 

Now,  what  happened?  I  was  sent  in  there  by  some  gentlemen 
from  this  city  to  investigate  some  placer  grounds  on  the  outskirts  of 
old  Florence.  I  investigated  these  old  diggings.  I  found  that  there 
was  opportunity  for  millions  to  be  taken  out  in  that  camp  by  the 
modern  methods  and  improved  methods  that  we  can  apply  today.  I 
went  in  there  as  a  prospector  and  nothing  more,  without  means,  but  I 
had  my  salary  paid  for  the  little  while  that  I  was  working  for  this 
company  investigating  their  property  for  them  and  making  a  report. 
After  that  I  was  a  free  lance.  I  tested  this  ground  out.  I  discovered 
that  the  water  had  been  brought  into  this  country  in  the  early  days 
by  great  ditches  and  canals.  A  certain  doctor  in  Walla  Walla  made 
his  millions  by  those  operations.  And  when  the  little  claims  were 
worked  out  the  miners  abandoned  their  claims.  That  country  has  been 
in  that  condition  since  1869  and  70.  I  went  down  there.  I  tested  this 
ground.  I  saw  there  was  an  opportunity,  if  I  could  get  a  little  aid,  to 
make  a  fortune  for  a  hundred  men.  I  did  succeed  in  having  a  friend 
of  mine,  who  worked  with  me  on  Glacier  Creek  in  Alaska  in  1900  who 


70  OFFICIAL    PROCEEDINGS 

had  been  fortunate  enough  to  get  together  a  few  dollars  and  he  came 
to  my  rescue.  I  went  in  there  to  bring  in  this  water.  We  had  twelve 
hundred  and  forty-two  feet  of  trestle  and  flume  to  bring  in,  three  hun- 
dred and  sixty  feet  of  siphon  of  twelve  inch  pipe,  that  would  put  across 
what  was  called  a  six-ounce  gulch.  That  would  handle  less  than  one 
cubic  yard  of  dirt.  These  trestles  and  flumes,  as  I  say — the  country 
had  been  abandoned  by  the  prospectors  whose  claims  consisted  of  fifty 
to  three  hundred  feet — and  when  these  owners  abandoned  the  country 
they  allowed  the  ditches  to  go  down,  the  flumes  to  rot  down,  and  I 
tell  you  there  are  places  there  where  flumes  cross  these  gulches,  great 
canals  where  you  could  not  find  a  vestige  of  the  flumes,  not  a  rotten 
board  or  trestle.  Now,  then,  it  was  my  date  to  conserve  our  resources 
as  best  I  could,  of  course.  To  build  these  trestles  I  had  to  buy  all  the 
old  buildings  that  were  there  in  the  early  days  and  use  the  boards  that 
were  in  them  to  build  my  flumes  on  and  my  trestles. 

THE   PRESIDENT:    Time. 

Chorus  of  "Go  on." 

MR.  ROBERT  NEILL:  Just  a  minute  and  I  am  through,  Mr. 
President. 

Now,  then,  when  I  began  to  build  my  trestles,  what  happened? 
The  Forestry  boys  were  there — and  I  say  in  behalf  of  the  Forestry  boys 
of  the  Idaho  Reservations,  in  the  Idaho  country,  they  are  as  fine  kids 
as  ever  lived.  They  are  all  right.  But  they  were  obeying  orders.  I 
had  to  buy  my  lumber,  the  black  pine,  worthless  stuff.  We  had  to  pay 
our  forest  people  for  the  use  of  the  old  black  pine  as  part  of  the  expense 
of  my  trestle  and  flume  business.  That  is  all  I  have  got  to  say. 

THE  PRESIDENT:  Gentlemen,  the  hour  for  receiving  reports 
of  the  Committee  on  Nominations  has  arrived.  The  order  of  the  day  is 
to  receive  that  committee.  If  it  is  the  desire  of  this  meeting,  a  motion 
will  be  in  order  that  we  receive  that  report  this  afternoon  and  occupy 
the  rest  of  the  time  this  morning  in  this  discussion. 

MR.  ROBERT  NEILL:  1  would  make  a  motion,  Mr.  President, 
that  we  extend  the  time  and  dispose  of  this  matter  and  receive  the 
report  of  the  committee  at  two  o'clock. 

Motion  seconded  and  carried. 

MR.  J.  L.  STEELE,  (Landlock,  Alaska):  Mr.  President,  I  am  one 
of  those  unfortunates  who  were  located  on  a  Forest  Reserve.  I  was 
there  before  the  Forest  Reserve  came  or  before  the  Forestry  Bureau 
was  created.  I  noticed  in  the  paper  yesterday  where  it  said  that  no 
prospector  had  ever  been  put  off  of  a  Forest  Reserve.  That  is  prob- 
ably true,  but  what  happens  to  Mr.  Prospector  after  he  discovers  some- 
thing that  is  worth  while  and  especially  so  in  Alaska,  at  this  time.  He 
must  go  to  some  of  his  friends  in  order  to  secure  funds  to  develop  his 
property  for  the  reason  that  the  average,  I  will  say  ninety  per  cent  of 
the  prospectors  of  this  country  have  not  the  money  for  development 
themselves,  and  on  account  of  the  attitude  of  the  Forest  Reserve  and 
the  Interior  Department,  it  is  almost  impossible  to  secure  the  funds 
for  the  development  of  an  ordinary  property.  It  must  be  something 
very  extraordinary.  Now,  here  is  one  point  I  want  to  bring  to  your 
attention  and  that  is  my  own  experience.  We  have  seven  claims  there 
upon  which  the  government  requires  us  within  five  years,  to  expend  the 
sum  of  thirty-five  hundred  dollars  before  we  can  make  an  application 
for  patent.  In  less  than  three  years  we  had  spent  over  one  hundred 
thousand  dollars  in  the  development  of  that  country.  Then  we  had  to 
go  to  Mr.  Forester  as  the  regulations  say  and  ask  him  to  come  there 
and  see  whether  our  property  was  worth  more  for  the  trees  on  the 
surface  or  the  minerals  contained  below  the  surface.  Think  of  a  for- 
estry man  whom  they  claim  has  been  educated  in  forestry  alone,  knowing 
the  value  of  a  mine — and  the  most  of  them  are  afraid  to  go  underground. 
(Applause.) 

Here  is  another  point  I  want  to  bring  up,  and  that  is  this:  We 
have  built  up  and  maintained  a  dock  right  at  tide  water.  We  have  to 
drive  those  pilings  every  fourteen  months  on  account  of  the  decay.  Our 


AMERICAN    MINING    CONGRESS  71 

neighbors  have  used  those  docks  together  with  us  but  we  have  never 
charged  them  one  cent  for  rent  because  their  goods  are  landed  on  the 
dock.  We  have  never  charged  one  cent  because  of  their  tying  up  there, 
but  Mr.  Forestryman  comes  along  and  says,  "You  got  to  make  a 
report  of  the  piling  you  have  used  in  your  dock.  I  have  got  to  make 
a  settlement  with  you  for  that  piling.  I  have  got  to  make  a  settlement 
with  you  for  the  wood  that  you  have  burned  during  the  past  year  and 
we  will  make  an  estimate  of  it  and  you  must  pay  it  and  you  must  pay 
so  much  per  cord  and  so  much  per  foot  of  piling."  I  said,  "How  do 
you  know  where  we  got  it?"  He  said,  "I  know  you  got  it  off  of  the  gov- 
ernment land  because  there  is  not  enough  lumber  on  your  land  for 
piling  and  wood."  He  believes  it  is  worth  more  for  the  lumber  than  it 
is  for  us  to  practically  make  a  new  dock  every  fourteen  months  be- 
fore we  can  get  any  kind  of  a  dock.  And  we  are  fourteen  months  be- 
fore we  can  get  any  kind  of  a  hearing  or  official  recognition  from  the 
General  Land  Office  and  sixteen  months  more  before  patent  issues.  If 
that  is  not  good  business  for  the  Forestry  Service  or  the  Interior  De- 
partment I  would  like  to  know  what  you  call  it. 

That  is  my  own  personal  experience,  gentlemen,  and  I  want  to  say 
that  Alaska  does  not  need  Forestry  Reserves  any  more  than  do  the 
plains  of  Kansas  or  Arizona.  (Applause.) 

THE  PRESIDENT:    Are  there  any  other  remarks? 

MR.  MAURICE  D.  LEEHEY,  (Seattle):  Mr.  President,  I  wish 
to  say  a  few  words  in  response  to  a  statement  in  the  address  of  Mr. 
Graves  that  the  Forest  Service  assists  mineral  claimants  in  their  efforts 
to  obtain  patents.  I  have  been  conducting  mineral  applications  before 
the  General  Land  Office  ever  since  before  the  Forest  Service  was 
created.  I  was  told  by  the  Receiver  at  Juneau  that  I  appeared  as  at- 
torney of  record  for  claimants  in  more  than  half  of  the  lode  and  placer 
applications  for  patent  filed  in  Alaska.  I  have  such  applications  now 
pending  in  four  different  states,  and  in  four  different  land  offices  in 
this  state.  I  do  not  say  this  to  boast,  but  simply  that  you  may  know 
whether  to  attach  any  importance  to  my  statement. 

I  have  never  conducted  a  mineral  entry,  for  lands  within  a  Forest 
Reserve  or  National  Forest,  that  the  Forest  Service  did  not  in  some 
manner  oppose  or  hamper,  and  to  some  extent  delay.  They  always 
make  such  entries  more  tedious  and  expensive  to  the  claimants,  and 
usually  to  such  an  extent  that  a  poor  man  cannot  afford  to  obtain  a 
patent  to  a  mining  claim.  The  Forest  Service  officials  are  courteous, 
and  less  harm  is  done  in  the  case  of  wealthy  concerns  who  can  afford 
the  expense  of  meeting  their  technical,  burdensome  and  frequently 
oppressive  requirements.  I  can't  remember  when  an  application  for 
patent  which  I  was  conducting,  for  lands  outside  of  the  National  For- 
ests, was  delayed  more  than  one  year  after  presenting  the  final  proofs. 
And  I  can't  recall  any  application  I  ever  handled,  for  lands  within  a 
National  Forest,  but  what  we  were  delayed  two  or  three  years  after 
final  proofs.  In  other  words,  I  never  received  a  patent  for  mineral 
lands  within  a  Forest  Reserve  in  less  than  two  years — 

MR.  ROBERT  NEILL:    And  you  never  will. 

MR.  H.  H.  SCHWARTZ:  Mr.  Chairman  and  gentlemen  of  the 
Convention:  I  have  here  Mr.  Graves'  letter  or  what  purports  to  be  his 
letter.  I  shall  not  attempt  to  follow  it  in  all  of  its  phases,  but  there 
are  some  few  features  that  I  believe  ought  to  be  replied  to.  Like  the 
gentlemen  who  has  just  preceded  me,  I  have  had  some  little  experience 
in  public  land  litigation.  I  happen  to  have  been  on  the  other  side  of 
the  fence.  For  a  period  of  fifteen  years  I  was  in  the  Government 
Service  connected  with  the  different  public  land  investigations.  Re- 
signing from  that  position  about  two  and  a  half  years  ago,  at  the  head 
of  the  entire  force  of  some  three  or  four  hundred  men  who  were 
working  in  the  General  Land  Office.  Mr.  Graves  says  that  with  all  these 
complaints  in  the  West,  they  lack  instance,  they  lack  specification, 
and  he  would  like  to  have  a  light  some  place.  Well,  ladies  and  gentle- 
men, several  of  the  men  who  have  preceded  me  this  morning  have 


72  OFFICIAL    PROCEEDINGS 

lit  so  he  can  see  there  are  instances  (laughter).  I  can  cite  more. 
He  says  that  an  honest  claimant  is  not  turned  off  a  Forest  Reserve.  I 
remember  one  in  Montana.  A  certain  citizen  in  Montana  had  some 
claims.  He  was  born  in  the  state  and  he  knew  every  angle  of  the 
game.  He  had  a  group  of  claims  and  for  about  a  period  of  seven  years 
after  he  wanted  to  pay  his  money  and  get  his  title  they  were  held  up 
by  the  Forestry  Service.  (And  for  fear  that  I  may  mis-state  the  fact 
I  will  point  out  the  gentleman  who  owned  these  mining  claims.  I  see 
him  over  there.  He  is  Lieutenant  Governor  Allen  of  Montana.)  The 
first  man  that  the  Forest  Service  sent  out  there  to  investigate  this 
proposition  turned  back.  He  said  the  tunnel  was  dark  and  gloomy  and 
dripping  and  the  water  hit  him  and  soaked  him,  and  he  struck  for 
daylight,  and  went  away  and  it  was  a  period  of  a  year  before  the 
Lieutenant  Governor  of  Montana,  could  get  another  man  to  look  at 
his  claim  and  find  out  whether  he  was  justified  in  spending  a  large 
amount  of  money  there,  probably  a  hundred  thousand  dollars.  The 
proposition  was  that  there  was  some  timber  up  on  top  of  this  claim. 
That  was  the  trouble.  Then  another  man  came  out  to  see  about 
another  claim.  That  claim  was  in  the  center  of  the  group,  and  some- 
thing happened  to  him,  and  his  report  never  got  in  and  it  was  never 
acted  upon,  and  it  was  another  year  before  Allen  could  get  another 
man  to  go  out  there.  I  think  it  was  probably  two  years  that  time, 
and  that  man  happened  to  have  been  born  and  raised  in  the  West  and 
he  knew  something  about  mining,  but  even  he  in  his  initial  examina- 
tion could  not  find  enough  and  he  came  back  prepared  to  adverse 
this  claim  in  the  center  of  that  group;  with  the  result  that  another 
fellow  could  come  along  and  get  Allen  into  apex  litigation.  But  after 
six  or  seven  years  they  reported  favorably  upon  every  claim  in  the 
group.  Now,  suppose  Mr.  Allen  instead  of  being  situated  as  he  was, 
had  been  just  a  common  ordinary  prospector  who  had  to  raise  some 
money  to  develop  his  claims,  how  in  the  world  would  he  have  gotten 
his  title  if  he  had  to  wait  that  six  years? 

I  can  cite  you  another  instance.  I  refer  to  a  mineral  claimant 
down  in  central  Oregon.  He  has  located,  under  the  placer  act,  a  salt 
spring.  It  discharges  160,000  gallons  of  boiling  water  every  day,  and 
contains  table  salt.  He  went  in  there  when  it  was  forty  miles  from 
a  railroad  but  it  was  in  a  country  where  they  had  to  bring  a  road.  He 
is  one  of  the  pioneers  who  look  to  the  future,  who  help  to  blaze  the 
path  for  civilization,  and  who  help  to  develop  the  country  and  make 
it  a  place  fit  to  live  in.  And  after  he  had  been  in  there  several  years, 
the  Forestry  Service  came  in  and  adyersed  him.  He  has  not  got  his 
patent  yet,  and  they  propose  to  fire  him  out  of  there.  What  is  behind 
it?  They  have  prepared  a  lease  to  a  man  by  the  name  of  Young  in 
Portland,  Oregon,  a  wealthy  man,  whereby — talk  about  the  Forestry 
Service — whereby  they  proposed  to  lease  that  prospector's  salt  mine  to 
another  for  a  period  of  thirty  years  or  something  like  that  and  they 
have  the  lease  prepared,  and  in  front  of  them  they  are  holding  the 
scales  of  justice — and  they  are  going  to  determine  whether  or  not  that 
prospector  is  going  to  stay  in  the  Forest  Reserve,  or  whether  he  is 
going  to  get  out.  I  tell  you  that  prospector  has  no  more  chance  than 
you  would  have  in  Hades,  trying  to  start  an  ice  factory  with  a  snow 
ball. 

I  could  cite  you  a  case  of  a  man  by  the  name  of  Frank  L.  Jenkins, 
by  his  side  is  a  man  by  the  name  of  Jones,  and  there  are  others.  Those 
of  you  who  live  on  this  coast  know  what  it  means  to  go  thirty  or  forty 
miles  to  a  railroad.  That  timber  country  out  there  is  covered  with  a 
brush.  I  couldn't  see  you  if  you  were  there  and  I  were  here  (indi- 
cating), out  in  that  country,  because  the  brush  is  too  thick.  Those 
men  went  out  there  alone,  and  they  got  together  and  they  cut  a  trail 
and  built  a  road  as  a  community  proposition.  After  they  got  in  there — 
(some  of  the  land  was  level,  some  was  rough,  and  some  was  cursed 
with  a  lot  of  timber  which  has  been  to  their  detriment  ever  since) — 
they  didn't  know  how  to  select  claims  so  they  said  "we  will  shake 


AMERICAN    MINING    CONGRESS  73 

dice,"  "we  will  spit  on  a  stick,"  "we  will  match,"  and  see  who  takes 
this  claim  or  that,  and  they  did  that.  Oh,  that  was  a  suspicious  cir- 
cumstance, the  fact  that  by  lottery  they  had  determined  their  claims 
after  they  got  in  there,  that  was  a  suspicious  circumstance!  But  they 
got  in  there,  and  after  they  got  in  there  these  men  discovered  they 
were  on  sections  that  belonged  to  the  Northern  Pacific.  I  guess  my 
time  is  up. 

MR.  ROBERT  NEILL:  May  the  gentleman's  time  be  extended 
ten  minutes?  I  so  move. 

Motion   seconded   and   carried. 

Mr.  H.  H.  SCHWARTZ:  They  were  later  held  up  on  reports 
by  a  gentleman  who  is  a  particular  personal  friend  of  mine,  a  man  by 
the  name  of  Glavis  (laughter).  And  he  reported  that  unless  a  certain 
proposition  of  law  would  interfere  the  boys  ought  to  have  their 
claims.  They  went  in  there  in  1902.  Those  men  are  getting  old,  and 
their  children  are  growing  up.  Immediately  after  that  they  were  sub- 
jected to  a  private  contest,  and  their  case  was  taken  to  Washington 
on  that  private  contest — a  contestant  in  that  part  of  the  state  had  taken 
in  a  crew  of  men  and  contested  about  twenty-five  or  thirty  settlers 
there.  That  was  a  long  litigation,  but  they  finally  whipped  him  put. 
In  that  half-township  there  are  one  hundred  and  sixty  acres  that  is 
vacant  land,  and  there  were  these  three  homesteaders  on  that  half- 
township,  and  yet  the  government  came  along  and  included  the  North 
half  of  that  township  in  a  forest  reservation.  What  did  the  Forest 
Service  expect  to  get?  Those  three  claims.  Now,  when  these  settlers 
whipped  that  private  contestant,  then  along  comes  the  Forest  Service 
and  protests  their  claims,  and  then  there  is  another  hearing  of  the  case, 
and  it  is  fought  out.  They  propose  to  cancel  out  those  boys  because 
they  didn't  live  there  continuously.  Why,  one  of  them  was  a  brake- 
man  before  he  went  in  there,  another  was  a  common  laborer,  and 
another  was  a  blacksmith,  and  one  of  the  boys  was  injured,  too.  They 
are  trying  to  cancel  them  out  of  that  Forest  Reserve  and  why?  Be- 
cause, they  say,  it  appears  that  one  had  a  house  and  lot  in  another 
town,  where  he  was  supposed  to  live  at  that  time.  I  didn't  try  those 
cases;  but  I  found  that  this  man  Jenkins  had  the  effrontery  to  pay  a 
hundred  and  fifty  dollars  for  a  house  and  lot  to  live  in  when  he  was 
earning  a  grub-stake  in  Carrol  Point.  That  was  the  house  and  lot 
that  would  prevent  him  getting  one  hundred  and  sixty  acres  of  ground. 
What  kind  of  house  and  lot  it  must  have  been?  He  sold  it  for  $100. 
That  record  was  made  up,  and  went  to  Washington.  That  was  a  law- 
suit upon  which  the  Government  is  supposed  to  be  on  one  side,  and 
the  individual  on  the  other.  What  happened?  It  got  into  the  Interior 
Department  and  they  looked  that  record  over,  and  it  must  have  wor- 
ried them.  They  sent  three  investigators  out  there  to  re-investigate 
that  country.  Now,  it  is  to  be  presumed  that  those  men  would  have 
their  rights  determined  by  a  trial  where  witnesses  are  brought  face  to 
face  with  each  other.  For  what  on  earth  did  the  Department  send 
three  men  out  there  to  spend  six  weeks  and  come  back  and  submit  a 
report  of  three  hundred  pages?  I  don't  know  what  is  in  that  report. 
These  settlers  don't  know  what  is  in  that  report.  They  have  no  chance 
of  defending  themselves.  They  want  what  is  right,  and  that  is  not 
possible  under  this  system;  and  it  has  never  been  possible  for  two 
men  to  go  into  a  controversy  and  for  one  of  them  to  judge  that  con- 
troversy. Where  the  executive  withdraws  land  and  then  attacks  a 
private  entry,  that  entryman  should  have  access  to  the  courts  upon  the 
merits  of  his  entry. 

I  want  to  refer  to  another  angle  of  Mr.  Graves'  letter  here  where 
he  says  that  the  agricultural  lands  in  the  Forest  Reserves  are  open 
for  settlement.  I  want  to  call  your  attention  to  the  fact  that  in  Oregon 
on  the  edge  of  the  Pacific  Ocean  there  is  a  forest  reservation  in  which 
a.  man  may  not  even  make  an  application  to  go  out  on  the  public  land 
and  make  a  settlement.  The  act  of  1906  is  annulled  by  imperial  decree. 

MR.  ROBERT  NEILL:   The  same  thing  applies  over  in  Idaho. 


74  OFFICIAL    PROCEEDINGS 

MR.  H.  H.  SCHWARTZ:  I  want  to  say  there  are  townships 
there  where  the  rain  is  so  heavy,  and  the  sun  is  so  warm,  that  the 
brush  has  grown  up  higher  than  this  room,  and  it  is  so  thick  that  there 
is  no  timber  there  at  all;  and  if  I  had  an  opportunity  in  a  single  day  I 
could  get  sixty  American  citizens  in  Portland  who  would  be  willing  to 
go  down  there  and  settle  that  country.  No  timber  there,  yet  it  is  a 
reserve  and  they  say  it  is  open  for  settlement.  And  when  I  say  that 
I  can  get  American  citizens  to  go  down  there  and  settle,  I  am  talking 
about  farmers  who  would  go  down  there  and  take  up  a  claim  if  they 
had  an  opportunity  to  go  into  that  Forest  Reserve  and  settle  there.  It 
has  just  as  fine  a  climate  as  ever  lay  out  of  doors,  and  the  soil  will 
produce  every  product  of  the  temperate  zone.  I  was  down  there  on 
the  19th  of  September,  and  they  were  selling  strawberries  in  Newport, 
and  we  went  up  on  the  hills  and  picked  black-berries  and  blue-berries. 
This  is  in  a  Forest  Reserve  where  there  ought  to  be  school-houses  and 
homes  of  people  and  farmhouses  and  little  villages,  where  there  ought 
to  be  a  house  down  by  the  side  of  the  road  all  covered  over  with  ivy 
with  a  little  wife  sitting  on  the  porch  singing  to  her  baby  (applause). 
Do  you  know  that  your  ancestors  back  to  the  first  dawn  of  creation 
always  took  their  products  and  their  sustenance  out  of  the  forest? 
When  the  pioneers  went  out  and  settled  up  the  middle  states  they 
didn't  start  their  farms  on  the  plains.  They  went  to  the  forests  where 
they  had  a  clearing  and  where  the  background  on  all  sides  was  nothing 
but  big  forest  trees.  Why,  in  the  place  where  I  was  born,  in  Ohio,  the 
log  cabin  there  was  made  out  of  black  walnut  that  we  had  cut  down 
to  clear  a  place  for  the  farm,  and  we  had  a  two  hundred  acre  farm 
and  it  was  fenced  with  black  walnut.  That  farm  has  produced  a  crop 
every  year.  Why,  if  we  had  a  conservation  or  a  reservation  policy,  the 
vast  state  of  Ohio  with  all  its  teeming  cities,  with  all  its  culture  and 
all  its  pleasures,  and  all  its  civilization,  and  all  that  goes  to  make  up 
the  great  cities  of  men,  would  have  been  a  sweep  of  forests.  There 
would  have  been  nothing  there  excepting  trees  and  rattle-snakes  and 
wolves  and  bears  and  Forest  Rangers  (laughter). 

I  want  to  tell  you,  gentlemen,  that  this  country  has  been  filled 
up  or  officially  populated  by  a  lot  of  howling  Dervishes  who  are  danc- 
ing and  bowing  to  a  wooden  prophet  in  an  age  of  iron  and  steel  and 
cement. 

I  want  to  call  your  attention  to  a  situation  over  in  Montana,  we 
will  say,  on  the  Flathead  river  and  the  Kootenay  river  up  there  in  the 
Forest  Reservations.  There  claims  do  not  run  to  timber  heavily  like 
they  do  on  this  coast.  They  run  to  two  million  feet  of  nice  timber  to 
a  quarter  section.  Now  I  happen  to  know  that  my  friend,  Mr.  Walsh 
of  Helena  has  some  land  up  there  and  he  is  trying  his  best  to  get  two 
dollars  a  thousand  for  it.  Upon  that  basis  one  of  those  claims  would  be 
worth  four  thousand  dollars  for  the  timber  that  is  on  it,  one  of  those 
one  hundred  and  sixty  acres  on  the  Forest  Reservation.  I  am  talking 
about  the  first  benches  and  the  valleys.  That  soil  there  is  very  good 
It  would  easily  produce  forty  bushels  of  wheat  to  the  acre  without  any 
trouble  at  all  and  you  can  get  seventy-five  cents  a  bushel  for  it.  What 
have  you  got?  You  have  got  three  thousand  dollars  in  a  single  year 
from  one  of  those  quarter-sections,  whereas  the  timber  on  it,  which  will 
probably  .take  two  or  three  generations  to  grow,  is  worth  but  three 
thousand  dollars.  Mr.  Graves  says  that  some  of  our  forest  species 
require  seventy-five  or  a  hundred  years  to  produce.  In  a  single  year 
you  will  get  enough  money  if  that  land  were  put  under  cultivation,  to 
pay  for  all  of  that  timber.  Now,  the  idea  of  "saving"  this  for  posterity. 
How  do  you  know  that  posterity  will  require,  or  will  need  this?  Prob- 
ably at  that  time  they  will  have  some  other  methods  in  which  they  will 
not  need  the  timber,  and  when  posterity  comes  it  will  look  back  and 
think  "What  fools  these  mortals  be." 

THE  PRESIDENT:  I  believe  that  the  hour  has  come  when  we 
will  have  to  adjourn,  and  we  will  take  this  up  later  if  you  desire.  The 
Secretary  has  an  announcement  to  make. 


AMERICAN    MINING    CONGRESS  75 

SECRETARY  CALLBREATH:  You  are  all  invited  to  become 
the  guests  of  the  Ad  Club  at  luncheon. 

Whereupon  an  adjournment  was  taken  for  luncheon. 

WEDNESDAY,  NOVEMBER  27,  1913. 
Afternoon  Session. 

THE  PRESIDENT:  The  first  order  of  business  is  the  introduc- 
tion of  resolutions.  Are  there  any  resolutions  to  be  offered?  The  next 
will  be  the  report  of  the  Resolutions  Committee  by  the  chairman  of 
that  committee,  Mr.  Samuels. 

MR.  H.  F.  SAMUELS:  Mr.  President  and  Ladies  and  Gentle- 
men: The  Committee  on  Resolutions  have  a  partial  report  which  we 
wish  to  submit  for  your  consideration  now.  First  we  have  combined 
in  one  resolution,  resolution  one,  which  is  submitted  by  Mr.  A.  M. 
White,  and  resolution  No.  2,  which  was  submitted  by  Governor  W.  R. 
Allen,  the  substitute  reading  as  follows: 

Substitute  for  Resolution  Nos.  1  and  2,  by  Committee  on  Resolutions. 
Whereas,  The  most  important  function  of  the  Department  of 
the   Interior,  is  that  which  has  to  do  with  the  administration  and 
control  of  the  Public  Lands,  and 

Whereas,  The  greater  part  of  the  Public  Lands  are  situated 
within  the  arid  land  and  mining  states  where  distinct  systems  of 
law  prevail,  which  do  not  prevail  elsewhere,  and 

Whereas,  An  intelligent  administration  of  the  Public  Domain 
within  such  states  can  best  be  given  by  one  having  a  knowledge  of 
the  conditions,  which  made  necessary  the  adoption  of  these  sepa- 
rate system  of  law;  now  therefore, 

Be  It  Resolved,  That  the  President-elect  of  the  United  States, 
Honorable  Woodrow  Wilson,  be  earnestly  requested  and  urged  to 
select  for  his  Cabinet,  as  Secretary  of  Interior,  a  resident  of  the 
West,  acquainted  with  Public  Land  laws  and  who  by  actual  ex- 
perience, is  familiar  with  western  conditions,  and 

It  Is  Further  Resolved,  That  the  Secretary  of  this  Congress 
be  directed  to  transmit  a  copy  of  these  resolutions  to  the  Honorable 
Woodrow  Wilson. 

THE  CHAIRMAN:  You  have  heard  this  resolution;  what  is  your 
wish? 

MR.  SAMUELS:     I  move  the  adoption  of  the  substitute  resolution. 
THE    PRESIDENT:     Any  remarks? 

MR.  W.  B.  DENNIS,  Portland,  Oregon:  The  language  of  the 
resolution  is  that  the  Secretary  of  the  Interior  shall  be  selected  from 
the  West.  It  seems  to  me  that  the  term  West  should  be  more  clearly 
defined  because  what  is  West  to  the  Honorable  Woodrow  Wilson  from 
New  Jersey  may  not  be  West  in  the  meaning  of  this  Congress.  The 
only  other  term  defining  the  location  is  the  "arid"  region.  That  is 
somewhat  indistinct  and  indefinite  and  it  seems  to  me  that  the  resolution 
should  definitely  state  west  of  what  line  or  name  the  States  of  the 
West  from  which  the  representative  should  come. 

MR.  A.  M.  DEWEY,  Spokane:  Would  it  not  be  well  to  provide 
in  the  resolution  that  this  representative  is  to  be  recommended  from  the 
Public  Land  States?  That  would  cover  the  point  made. 

MR.  H.  H.  SCHWARTZ:  It  occurs  to  me  we  have  a  very  con- 
siderable number  of  States  West  that  are  Democratic  States  and  not 
Public  Land  States,  and  the  word  Public  Land  State  would  not  cover 
the  question,  and  it  occurs  to  me  that  the  word  Public  Land  State 
would  hardly  express  the  wish  of  the  Congress. 

MR.  W.  B.  DENNIS,  Oregon:  Mr.  President,  I  move  to  amend 
the  resolution  that  the  Secretary  of  the  Interior  shall  be  selected  from 
some  place  in  the  territory  west  of  the  Mississippi  River. 

THE  PRESIDENT:     You  have  heard  the  motion;  is  it  seconded? 
MR.  ROBERT  NEILL:     I  second  it. 


76  OFFICIAL    PROCEEDINGS 

THE  PRESIDENT:  It  has  been  moved  and  seconded  that  the 
resolution  shall  be  amended  to  read  from  some  state  west  of  the  Mis- 
sissippi River.  Are  there  any  remarks  on  this  motion  or  the  amend- 
ment? 

MR.  DEWEY,  Spokane:  It  suggests  to  me  the  thought  that  the 
Mississippi  River  is  pretty  far  east.  (Laughter.)  It  seems  to  me  that 
the  Rocky  Mountain  country  is  about  where  we  commence  to  consider 
that  we  are  West,  and  if  we  could  suggest  to  the  President  that  this 
appointee  be  selected  from  the  States  west  of  a  certain  parallel  or 
meridian  or  perpendicular  line  from  the  Gulf  to  the  British  Columbia 
line,  along  about  where  it  could  catch  the  State  of  Colorado  and  from 
there  west,  it  seems  to  me  we  would  get  West.  We  cannot  get  west 
very  far  if  we  go  way  over  to  the  Mississippi  River.  I  think  that  is  a 
long  way  east. 

GOVERNOR  ALLEN:  I  would  suggest  that  the  American  Min- 
ing Congress  insert  the  words,  "From  a  mining  State  of  the  West."  I 
think  that  would  take  care  of  that. 

MR.  DAVID  ROSS,  Illinois:  Illinois  has  always  got  to  follow 
Montana.  (Laughter.)  Both  of  the  suggestions  made  to  the  amend- 
ment leaves  out  the  State  of  Illinois.  We  have  no  public  lands  in 
Illinois,  while  unfortunately  the  Mississippi  River  is  just  outside  West, 
and  in  the  late  election  that  State  went  strongly  Democratic  and  there 
are  lots  of  patriots  who  are  looking  for  jobs,  saying  nothing  of  the 
humblest  representative  of  that  State  who  is  now  addressing  you. 
(Laughter.)  Furthermore,  I  believe  that  the  President-elect  will  feel 
under  a  great  many  obligations  to  this  Congress  for  suggesting,  if  not 
the  individual,  at  least  the  territory  from  which  he  should  come,  because 
I  believe  that  he  is  at  a  loss  to  know,  so  scarce  is  the  material,  just  who 
will  make  up  the  membership  of  his  next  cabinet.  But  aside  from  that, 
Mr.  Chairman,  while  both  of  your  proposed  amendments  leave  out 
Illinois,  I  rather  favor  the  suggestion,  if  the  President  in  his  wisdom 
and  in  his  goodness  will  accept  it,  that  a  representative  of  the  interests 
of  that  great  section  of  the  Western  country  who  is  in  touch  with  the 
situation  and  who  can  understand  this  problem  only  as  a  man  so 
situated  can  understand  it  ought,  as  a  matter  of  propriety,  aside  from 
politics,  to  sit  at  the  table  of  the  next  President-elect.  (Applause.) 

THE  PRESIDENT:  Any  further  remarks?  If  not,  are  you 
ready  for  the  question  on  the  amendment?  The  amendment  is  to  amend 
the  resolution  so  that  it  shall  read  that  the  selection  of  the  Secretary  of 
the  Interior  be  made  from  some  State  west  of  the  Mississippi  River. 
That  was  your  amendment,  was  it? 

MR.  G.   B.   DENNIS:     Question. 

MR.  DEWEY,  Spokane:  I  would  like  to  make  my  motion  in  the 
form  of  an  amendment,  if  you  please,  that  the  Secretary  of  the  Interior 
be  selected  from  territory  west  of  the  east  boundary  line  of  the  state  of 
Colorado. 

THE  CHAIRMAN:  Is  that  suggestion  seconded?  It  does  npt 
seem  to  be  seconded. 

HONORABLE  P.  D.  DECKER:  Does  that  include  Colorado? 
(Laughter.) 

COLONEL  W.  T.  PERKINS:  It  strikes  me  that  the  amendment, 
"West  of  the  Mississippi,"  is  but  a  very  little  more  definite  than  the 
wording  of  the  resolution  which  refers  to  the  West,  and  we  would  be 
as  apt  to  get  a  man  of  the  great  Northwest  if  we  leave  it  west  of  the 
Mississippi  as  before.  Therefore,  I  should  be  in  favor  of  leaving  it 
as  it  was  originally  presented. 

SECRETARY  CALLBREATH:  It  occurs  to  me  that  the  reason 
for  this  resolution  was  to  get  someone  in  the  Cabinet  who  is  familiar 
with  the  conditions  in  those  States  in  which  those  two  separate  sys- 
tems of  law  prevail  which  are  not  understood  elsewhere.  The  conditions 
which  made  necessary  the  creation  of  the  law  of  appropriation  and 
application  to  a  beneficial  use  of  water  as  opposed  to  the  doctrine  of 
riparian  rights  and  the  apex  law  in  mining  should  be  understood  by  one 


AMERICAN    MINING    CONGRESS  77 

called  upon  to  decide  questions  involving  those  principles.  A  man 
familiar  with  the  doctrine  of  riparian  rights  cannot  comprehend  the 
conditions  which  exist  in  the  West.  I  would  like  to  see  this  resolution 
so  amended  that  it  shall  say  that  the  man  chosen  for  that  position  shall 
be  a  resident  of  the  Public  Land  States  and  familiar  with  western 
conditions. 

MR.  H.  H.  SCHWARTZ:  I  move  then,  as  a  substitute,  that  he 
be  a  resident  of  the  Public  Land  States  and  familiar  with  western  con- 
ditions. 

Motion  seconded  and  carried. 

Resolution  Nos.  1  and  2  as  Amended. 

Whereas,  The  most  important  function  of  the  Department  of 
the  Interior  is  that  which  has  to  do  with  the  administration  and 
control  of  the  public  lands;  and 

Whereas,  The  greater  part  of  the  public  lands  are  situated 
within  the  arid  lands  and  mining  states  where  distinct  systems  of 
law  prevail  which  do  not  prevail  elsewhere;  and 

Whereas,  An  intelligent  administration  of  the  public  domain 
within  such  states  can  be  best  given  by  one  having  a  knowledge 
of  the  conditions  which  made  necessary  the  adoption  of  these 
separate  systems  of  law;  now,  therefore,  be  it 

Resolved,  That  President-elect  of  the  United  States,  the  Hon. 
Woodrow  Wilson,  be  earnestly  requested  and  urged  to  select  for 
his  cabinet  as  Secretary  of  the  Interior  a  resident  of  the  Public 
states,  acquainted  with  public  land  laws  and  who  by  actual  experi- 
ence is  familiar  with  western  conditions;  and  it  is  further 

Resolved,  That  the  Secretary  of  this  Congress  be  directed  to 
transmit  a  copy  of  these  resolutions  to  the  Hon.  Woodrow  Wilson. 
Upon    motion    the   resolution   as   amended   was   adopted. 
MR.   SAMUELS:     With  your  permission,   I  will  now  read  reso- 
lution   number   3,    proposed    by    the   Advisory    Committee    on    Mineral 
Statistics,  and  I  move  its  adoption. 

Resolution  No.  3. 

Whereas,  It  appears  that  for  want  of  an  appropriation  cover- 
ing the  cost  of  the  work,  the  Bureau  of  Census  is  making  no  sub- 
stantial headway  in  compiling  and  publishing  the  data  on  Mines 
and  Quarries  gathered  during  the  year  1910;  and 

Whereas,  These  statistics  have  an  important  bearing  on  ques- 
tions relating  to  the  mineral  lands  of  the  public  domain,  and  on  all 
legislation  relating  to  Mines  and  Minerals; 

Therefore  Be  It  Resolved,  By  the  American  Mining  Congress 
that  an  appeal  be  made  to  the  Congress  of  the  United  States  for 
such  an  appropriation  as  will  be  adequate  for  the  immediate  com- 
pilation and  publication  by  the  Bureau  of  the  Census  of  the  data 
now  on  hand  relating  to  mines  and  quarries. 
I  move  its  adoption. 

THE  PRESIDENT:  You  have  heard  the  resolution;  what  is 
your  desire? 

Motion   seconded  and  carried. 

MR.  H.  F.  SAMUELS:  With  your  permission  I  will  read  resolu- 
tion number  4,  introduced  by  Mr.  White  of  Dallas  Texas,  and  move  its 
adoption. 

Resolution  No.  4. 

Whereas,  It  is  believed  that  the  public  interests  will  be  served 
by  offering  special  inducements  to  the  prospector  and  developer  of 
mining  prospects  to  the  end  that  new  mines  may  be  opened,  and 

Whereas,  It  is  believed  that  in  all  cases  where  active  de- 
velopment work  is  in  progress  that  unproductive  mining  property 
should  not  be  burdened  with  taxation  in  addition  to  the  burden  of 
risk  incident  to  development  work  and  that  every  possible  in- 


78  OFFICIAL    PROCEEDINGS 

ducement  should  be  offered  to  stimulate  such  effort  as  well  create 
property  able  to  bear  the  burden  of  taxation;  Now, 

Therefore,  Be  It  Resolved,  That  a  committee  on  mine  taxa- 
tion be  appointed  and  asked  to  report  at  the  next  session  of  the 
Congress. 

Motion  seconded  and  carried. 

MR.    SAMUELS:     With  your  permission   I   will   read   resolutions 
Nos.  5  and  6,  submitted  by  the  Butte  section  of  the  American  Mining 
Congress.      Your    committee    recommends    the    adoption    of    Resolution 
No.  5  and  that  no  action  be  taken  on  Resolution  No.  6. 
I  move  the  adoption  of  the  committee's  report. 
Motion  seconded  and  carried. 

Resolution  No.  5. 

Whereas,  Throughout  the  West  where  most  of  the  mining 
sections  are  covered  by  United  States  Forest  Reserves,  from  which 
a  large  revenue  is  derived  yearly  by  the  Government,  a  large 
number  of  the  most  valuable  mining  properties  and  prospects  are 
inaccessible  and  will  remain  so  until  roads  can  be  constructed  to 
them,  and 

Whereas,  The  miner  and  prospector  is  compelled  to  expend 
$100  upon  each  claim  in  annual  assessment  work  and  to  pay  the 
Government  the  sum  of  $5.00  per  acre  when  patent  is  secured,  and 

Whereas,  Each  prospector  and  miner  becomes  a  guard  for 
the  protection  against  forest  fires  and  renders  great  assistance  to 
Forestry  officials  in  preventing  and  extinguishing  forest  fires,  and 
further  through  the  energy  of  the  prospectors  and  miners  the 
mining  districts  are  developed  thereby,  increasing  the  value  of  all 
timber  contiguous  to  such  districts,  in  addition  to  assisting  in  the 
development  of  the  country  in  general.  And 

Whereas,  The  prospector  has  always  been  and  always  will 
be  the  pioneer  in  discovering  and  developing  the  mining  districts, 
and  as  a  general  rule,  they  are  men  of  small  means  unable  to  build 
or  maintain  roads  to  properly  exploit  their  properties  or  ship  their 
ores,  thereby  becoming  absolutely  dependent  upon  those  of  larger 
means  who  can  build  said  roads.  These  conditions  have  retarded 
development  and  militated  against  the  worthy  propspector; 

Therefore  Be  It  Resolved,  That  it  is  the  sense  of  the  American 
Mining  Congress  unanimously  expressed,  that  this  condition  be 
brought  to  the  attention  of  our  representative  in  Congress  that 
some  measure  of  relief  be  afforded  these  advance  agents  of  civiliza- 
tion by  providing  for  the  construction  of  roads  in  isolated  mining 
districts  located  within  forest  reserves,  and  that  the  United  States 
Forest  Service  upon  proper  showing  be  required  to  assist  in  con- 
structing and  maintaining  said  roads. 

MR.  SAMUELS:  With  your  permission,  I  will  read  amended 
resolution  No.  9,  introduced  by  Robert  Neill  of  Florence,  Idaho,  and 
move  its  adoption. 

Amended  Resolution  No.  9. 

Whereas,  More  than  one  thousand  coal  claims  located  in 
Alaska  prior  to  the  withdrawal  order  of  November  12,  1906,  over 
three  hundred  of  which  claims  have  been  surveyed  at  the  expense 
of  the  claimants  and  applications  filed  in  the  Juneau  Land  Office 
for  patents  to  the  same,  and 

Whereas,  More  than  $350,000.  has  been  paid  by  coal  claimants 
into  the  Treasury  of  the  United  States,  which  money  is  still  retained 
by  the  Government,  yet  not  a  single  patent  has  been  issued  and 
final  action  has  been  taken  upon  only  one  group,  and 

Whereas,  Many  applications  have  been  pending  before  the 
Land  Office  for  five  and  six  years,  without  any  charges  having  been 
filed,  although  the  government  has  received  payment  for  the  land 
from  such  coal  claimants  more  than  four  years  ago,  and 


AMERICAN    MINING    CONGRESS  79 

Whereas,  In  view  of  the  declaration  of  the  present  Secretary 
of  the  Interior,  made  before  the  Committees  of  Congress  during 
the  present  year,  that  upon  the  existing  record  he  would  refuse  to 
issue  patents  to  any  coal  lands  in  Alaska,  and  in  view  of  certain 
recent  rulings  of  the  Secretary  of  the  Interior  in  the  interpretation 
of  the  coal  land  laws  of  Alaska,  especially  with  reference  to  the 
requirement  for  opening  and  improving  coal  mines,  and  because  of 
the  extreme  situation  presented  in  A-laska,  it  is 

Resolved,     That  we,  the  American  Mining  Congress,  urgently 

recommend  to  the  Congress  of  the  United  States  the  enactment  of 

a  law  authorizing  claimants  to  coal  lands  in  Alaska  located  prior  to 

November  12,  1906,  to  maintain  an  action  in  the  courts  of  Alaska. 

Motion    seconded    and    carried. 

MR.  H.  F.  SAMUELS:  That  is  all  the  report  of  the  Committee 
on  Resolutions. 

THE  PRESIDENT:  The  report  of  the  Committee  on  General 
Revision  of  the  Mineral  Land  Laws  by  Mr.  Kirby  will  be  read  by  Mr. 
John  L.  Steele,  and  in  connection  with  the  report  we  will  have  a  dis- 
cussion on  the  Public  Land  question,  and  a  means  for  making  effective 
the  policy  agreed  upon  by  the  convention. 

MR.  JOHN  L.  STEELE:  In  getting  out  this  report  I  would  like 
to  say  the  committee  found  it  very  difficult,  largely  on  account  of  the 
amount  of  work  that  has  had  to  be  done  by  correspondence  and  the 
opposition  that  has  been  made  in  the  country  in  the  different  localities 
or  by  the  administration.  Following  this  brief  report  we  have  gathered 
some  memoranda  that  are  merely  suggestions. 

Mr.  John  Steele  then  read  the  report,  as  follows: 

Report  of  Committee  on  General  Revision  of  the  Mineral  Land  Laws. 

November  25,  1912. 

The  Committee  reports  that  it  has  been  unable  to  secure  any 
action  by  Congress  at  this  Session  towards  a  general  revision  of  the 
land  laws.  What  was  within  the  ability  of  the  Committee  has  been 
done.  There  has  been  much  correspondence  and  its  Chairman  has 
personally  made  three  visits  to  Washington.  Two  attempts  were 
made  to  interest  the  Administration  in  the  proposed  measure  and  it 
was  also  presented  to  the  Chairman  of  the  Committees  on  Mining 
and  the  Committees  on  Public  Lands  in  the  Senate  and  House,  but 
without  result. 

Senator  Reed  Smoot  of  Utah,  who  is  Chairman  of  the  Senate 
Committee  on  Public  Lands,  approves  the  measure,  made  genuine 
efforts  to  assist  the  Committee,  and  went  with  its  Chairman  to 
Secretary  Fisher  to  ascertain  whether  the  Administration  would 
not  take  up  the  revision  as  part  of  its  program. 

The  Secretary  declared  himself  in  favor  of  correcting  certain 
special  points  such  as  the  Apex  Law  and  the  unlimited  number  of 
locations.  He  did  not  then  decide  whether  to  take  up  a  general  re- 
vision, but  has  since  done  nothing  in  the  matter,  except  to  recom- 
mend the  abolition  of  the  Apex  Law  in  Alaska,  and  it  is  evident 
that  the  attempt  to  show  him  the  impracticability  of  patch-work 
revision  was  unsuccessful. 

On  inquiry  in  the  Senate  an  unexpected  opposition  developed 
on  the  part  of  a  certain  Senator  who  was  opposed  to  any  change  in 
the  laws.  Senator  Smpot  was  therefore  obliged  to  drop  the  matter, 
explaining  that  with  his  overwhelming  burden  of  work  he  could  not 
undertake  to  push  a  measure  against  opposition  in  the  Senate  unless 
the  Administration  supported  it.  In  the  House  no  one  was  found 
willing  to  undertake  the  laborious  work  involved  without  first 
knowing  that  the  measure  would  be  successful  in  the  Senate.  (It 
may  be  added  that  the  opposing  Senator  will  not  appear  in  the  next 
Senate.) 

This  experience  has  made  several  points  clear, 


80  OFFICIAL    PROCEEDINGS 

1.  The  plan  of  the  American  Mining  Congress  for  a  general 
revision  is  generally  approved  as   soon  as  it  is  understood.     It  is 
now  evident  that  it  will  have  no  opposition  except  that  small  per- 
centage which  always  appears  when  anything  new  is  proposed  and 
which  usually  comes  from  extreme  conservatives,  who  are  by  nature 
opposed  to  any  improvement  in  existing  laws.     It  is  indifference  and 
not    opposition   which    must   be   overcome   in    order   to    secure    the 
revision. 

2.  No    measure   of   reform    which    is    not   widely   known    and 
understood  can  be  carried  through  unless  it  is  steadily  pushed  by 
some    active,    aggressive    men.      Legislators    are    like    other    men, 
unwilling  to  move  in  a  business  which  they  do  not  understand,  and 
only   a   very   small   percentage    of    the    hundreds    of   individuals    at 
Washington  who  have  to  act  in  the  matter  are  familiar  with  mining 
laws  or  their  effects.    To  make  the  situation  clear  enough  to  induce 
action  there  must  be  long,  persistent  work  by  someone  on  the  spot. 

3.  This  must  be  done  by  the  American  Mining  Congress  itself. 
No  legislator  will   do  such  trying  work  unless  he  is  keenly  inter- 
ested in  the  subject.     The  men  with  initiative  enough  to  undertake 
such   things   are    soon    overloaded   and    it   would    take    a   prolonged 
search  to  find  and  interest  some  Senator  or  Representative  who  was 
willing  and  also  free  to  undertake  it. 

It  will  therefore  be  necessary  for  the  American  Mining  Con- 
gress to  follow  the  same  procedure  that  was  required  in  creating 
the  Mining  Bureau.  It  must  have  a  representative  at  Washington 
pressing  the  revision  measure.  While  the  Secretary  of  the  Ameri- 
can Mining  Congress  was  there  during  the  last  Session  he  was  too 
much  overloaded  with  other  matters  to  undertake  the  revision 
business. 

It  is  necessary  to  face  the  fact  that  the  American  Mining 
Congress  cannot  secure  revision  or  any  other  relief  for  mining 
unless  it  provides  enough  money  to  do  the  work  required  at  Wash- 
ington, and  this  Committee  is  unable  to  proceed  further  until  some 
effective  means  are  provided  for  following  up  its  efforts. 

The  attached  memorandum  will  briefly  explain  the  work  which 
was  assigned  to  the  Committee. 

E.  B.  KIRBY, 

Chairman. 

MEMORANDUM. 

The  American  Mining  Congress  representing  the  Mining  Industry 
of  the  United  States  and  Alaska  asks  that  Congress  shall  undertake  m 
general  revision  of  the  Mineral  Land  Laws. 

Imperfections  of  the  Present  Laws. 

The  Mineral  Land  Laws  of  the  United  States  and  Alaska,  framed  in 
1872  and  interwoven  with  a  mass  of  supplementary  State  legislation, 
differing  in  every  State,  fail  to  meet  the  present  requirements  of  the 
industry.  Moreover,  they  have  developed  various  evils,  the  injurious 
effects  of  which  are  steadily  increasing.  These  have  become  so  serious 
as  to  retard  the  developmnt  of  mining  and  to  create  dissatisfaction  and 
complaint  everywhere. 

At  every  annual  session  of  the  American  Mining  Congress  during 
the  past  twelve  years  the  prevailing  discontent  with  the  present  code 
has  been  voiced  by  various  resolutions  calling  attention  to  its  evils  and 
asking  for  the  correction  of  this  or  that  feature  of  the  laws  relating  to 
mineral  claims  located  upon  the  public  domain.  Such  complaints  steadily 
increasing  in  volume  have  found  expression  not  only  in  the  Mining 
Congress,  but  also  in  the  Press  of  the  Mining  Communities,  all  the 
Mining  Journals,  in  the  Societies  of  Mining  Engineers  and  in  fact 
through  every  medium  available  for  the  expression  of  public  sentiment. 
They  have  nevertheless  been  without  result  for  the  reason  that  the 


AMERICAN    MINING    CONGRESS  81 

mining  laws  are  largely  interdependent  and  it  is  difficult,  if  not  im- 
possible, to  correct  one  fault  without  straightening  out  the  entire  code. 
Moreover,  the  States  affected,  some  of  which  have  often  attempted  to 
make  improvements,  find  that  nothing  effective  can  be  done  without 
the  action  of  Congress.  In  short,  patchwork  is  impossible  and  a  gen- 
eral revision  is  necessary. 

Difficulties  of  the  Work. 

Since  the  problems  involved  in  the  work  are  peculiar  to  the  in- 
dustry and  are  unusually  difficult,  it  is  evident  that  their  satisfactory 
solution  will  require  the  aid  of  the  most  experienced  judgment  together 
with  a  free  and  direct  expression  of  views  by  the  mining  communities 
themselves.  Among  the  many  questions  which  will  arise  during  a  re- 
vision are  the  following,  which  will  illustrate  the  nature  of  the  work. 

Some  of  the  Problems. 

The  Apex  Law,  with  the  uncertainties  of  title  and  litigation  caused 
by  it.  The  latter  includes  not  only  the  conflicts  caused  by  the  extra 
lateral  right,  but  also  those  occasioned  by  the  consequent  shapes  of 
claims  and  the  overlapping  of  lines. 

The  creation  of  a  definite  procedure  for  acquiring  rights  to  those 
claims  in  which  the  mineral  is  not  near  the  surface  and  where  discovery 
must  in  consequence  be  long  deferred. 

Tunnel  locations  and  the  uncertainties  of  title  caused  by  them  in 
neighboring  claims. 

The  present  non-observance   of  the  law  of   discovery. 

The  partial  or  complete  non-observance  through  various  expe- 
dients of  the  law  of  assessment. 

The  location  of  an  unlimited  number  of  claims  by  one  individual. 

Locations   by   proxy. 

Reasons  for  Revision  Now. 

A  general  revision  now  will  be  particularly  timely  because  of  the 
public  interest  in  conservation  and  the  new  legislation  now  under  con- 
sideration for  timber,  oil,  phosphate  and  coal  lands,  also  power  sites. 
To  omit  the  "Mining  Code"  from  any  program  for  the  betterment  of 
laws  relating  to  natural  resources  would  be  to  pass  by  the  field  where 
relief  is  most  urgently  needed. 

The  Action  Requested. 

The  American  Mining  Congress  at  its  last  annual  session  therefore 
reached  the  following  decision: 

"That  Congress  be  asked  to  undertake  promptly  a  general  re- 
vision of  the  Mineral  Land  Laws;  which,  in  view  of  the  difficult 
problems  presented,  should  be  in  co-operation  with  the  Mining  In- 
dustry. The  plan  adopted  for  this  co-operation  should  give  all 
sections  opportunity  for  public  hearing  and  the  discussion  of  reme- 
dies. The  Mining  Congress  will  suggest  a  practical  plan  for  this 
purpose  later  on  if  desired." 

In  requesting  action  upon  this  matter  it  is  therefore  suggested 
that  if  Congress  will  authorize  a  Committee  to  act,  the  representatives 
of  the  American  Mining  Congress  will  be  pleased  to  furnish  such  de- 
tailed information  and  suggestions  as  may  aid  the  Committee  in  pre- 
paring a  plan,  whether  for  a  Commission  or  otherwise,  which  will 
accomplish  the  ends  desired.  A  joint  resolution  like  the  following  is 
suggested: 

That Committee  is  instructed 

to  prepare  and  submit  at  this  session  a  mode  of  procedure  whereby 
Congress  may  undertake  a  general  revision  of  the  Mineral  Land 
Laws  of  the  United  States  in  the  way  which  will  best  promote  the 
public  welfare  and  meet  the  peculiar  needs  of  the  Mining  Industry. 
The  plan  recommended  should  provide  a  practical  means  whereby 
Congress  may  utilize  the  best  experience  and  judgment  available 


82  OFFICIAL    PROCEEDINGS 

in  the  industry  and  which  will  give  the  Mining  regions  of  the 
United  States  ample  opportunity  for  public  hearings  and  the  dis- 
cussion of  remedies. 

After  Congress  has  empowered  a  Committee  to  act  the  Committee 
of  the  American  Mining  Congress  hopes  to  have  the  opportunity  of  pre- 
senting to  the  Committee  at  Washington  such  detailed  information  and 
suggestions  as  may  aid  in  preparing  a  plan  whether  for  a  commission 
or  otherwise,  which  will  be  satisfactory  to  Congress  and  accomplish  the 
ends  desired.  It  is  believed  that  this  may  be  secured  through  a  wisely- 
selected  Commission,  authorized  to  draft  a  revised  code  for  the  use 
of  Congress.  This  Commission  should  hold  public  hearings  in  the  prin- 
cipal mining  centers  of  the  West  and  Alaska.  It  should  call  before  it 
men  prominent  for  their  knowledge  of  prospecting,  of  claim  locations, 
of  mine  operating,  mine  litigation  and  the  history  of  mining  laws,  and 
should  invite  opinions  from  the  public  bearing  upon  the  specific  points 
at  issue.  The  authorities  and  experience  of  other  mining  countries 
should  also  be  consulted  and  made  public  and  the  final  recommendations 
of  the  Commission  should  be  presented  to  Congress  in  the  form  of  a 
fully  drafted  Code. 

It  is  clear  that  there  is  a  best  practical  solution  for  each  one  of 
the  difficult  problems  involved  in  a  general  revision  of  the  Mineral  Land 
Laws,  but  in  order  to  determine  these  best  solutions,  all  opinions  must 
be  brought  to  a  focus  before  some  authoritative  body  which  has  the 
power  of  decision.  Moreover,  in  order  to  assure  the  general  approval 
and  acceptance  of  reforms  affecting  so  many  varied  interests,  the  per- 
sonnel of  this  body  should  be  such  as  to  command  confidence  and  the 
mining  communities  should  have  full  opportunities  to  present  their 
views  before  it.  There  is  a  wealth  of  learning  and  practical  experience 
in  the  country,  which  is  available  for  the  work  of  framing  a  revised 
code,  but  it  is  distributed  among  many  men  and  must  be  focused  by 
the  plan  indicated. 

THE  PRESIDENT:     Mr.  Dern,  will  you  kindly  take  the  chair? 

(Mr.  George  H.  Dern  was  then  installed  as  Temporary  Chairman.) 

THE  CHAIRMAN:  Gentlemen,  you  have  heard  the  report  of  the 
Committee  on  the  Revision  of  Mineral  Land  Laws  read  by  Mr.  Steele; 
what  will  you  do  with  the  report? 

MR.  DEWEY:  I  move  that  the  report  of  the  committee  be  ac- 
cepted and  that  the  former  action  of  the  American  Mining  Congress  be 
reaffirmed  at  this  time. 

Motion    seconded. 

THE  CHAIRMAN:  It  is  the  purpose  to  open  for  discussion  at 
this  time  the  question  of  a  general  revision  of  the  Mineral  Land  Laws 
and  any  remarks  on  that  subject  will  be  considered  in  order.  It  is  one 
of  the  most  important  questions  before  this  Congress,  and  I  have  no 
doubt  that  a  great  many  views  will  present  themselves.  I  would  like  to 
hear  from  the  members. 

THE  SECRETARY:  I  would  like  to  suggest  that  there  is  no  dis- 
cussion necessary  on  this  particular  proposition  as  presented  by  Mr. 
Dewey's  motion,  and  that  it  might  be  well  to  submit  this  question  and 
then  take  up  as  laid  down  in  the  program  the  general  discussion  of  a 
proper  Public  Land  policy  for  the  West  and  the  means  by  which  such 
policy  may  be  made  effective. 

Motion  carried. 

THE  CHAIRMAN:  The  discussion  that  I  just  mentioned  will  be 
the  next  order  of  business,  and  if  there  is  nobody  else  who  wants  to 
open  the  discussion  I  will  ask  the  Secretary  to  start  it. 

THE  SECRETARY:  Mr.  Chairman  and  Gentlemen  of  the  Con- 
vention: I  don't  know  that  I  ought  to  open  this  discussion,  but  it  may 
be  wise  that  I  outline  to  you  some  of  the  things  which  seem  to  me  to  be 
extremely  vital  in  the  handling  of  this  question. 

You  have  heard  a  great  deal  of  complaint  in  times  past  about  the 
Forest  Reserves.  Some  of  us  feel  that  things  are  wrong.  Many  of  us 
feel  that  in  a  general  way  the  purposes  as  outlined  by  the  Forestry 


AMERICAN    MINING    CONGRESS  83 

Bureau  are  very  commendable.  I  think  all  of  us  agree  that  in  the 
administration  of  the  Forest  Reserves  many  unintentional  mistakes 
have  been  made  and  some  of  us  believe  that  many  very  radical  inten- 
tional mistakes  have  been  made. 

Assuming  the  truth  of  the  worst  things  that  have  been  said  regard- 
ing the  Forestry  Service — with  which  I  want  to  say  frankly  that  I  do  not 
agree — even  then  I  believe  that  these  grievances  will  be  like  mosquito 
bites  as  compared  with  the  trouble  that  awaits  us  if  the  plan  for  new 
legislation  which  is  now  under  consideration  shall  be  adopted  by  Con- 
gress. When  the  Forestry  Service  first  proposed  to  charge  for  the  use 
of  the  waters  in  the  Forest  Reserves,  the  question  created  a  great  deal 
of  comment  and  opposition.  Those  who  are  hoping  for  complete  Fed- 
eral control  of  the  waters  immediately  said,  why  should  not  also  the 
Federal  Government  get  the  advantage  of  all  the  water  powers  which 
originate  in  the  public  domain.  I  want  to  say  for  the  advocates  of  that 
theory  that  some  of  them  were  sincere  in  the  belief  that  the  interest  of 
the  public  justified  this  course.  They  believed  that  the  time  would  come 
when  the  water  powers  of  the  West  would  be  very  much  more  valuable 
than  any  other  of  its  assets,  and  in  that  we  all  agree.  They  believed 
that  it  would  be  wise  if  the  Federal  Government  should  extend  its  pro- 
tecting hand  in  order  that  this  great  western  asset  should  not  be  con- 
trolled by  monopoly  or  become  a  special  burden  upon  our  people.  We 
all  know  that  cheap  power  is  necessary  in  the  development  of  our  in- 
dustry. We  cannot  move  the  engines  upon  our  tracks  nor  the  hoisting- 
engines  in  our  mines  nor  perform  any  other  operation  except  we  have 
some  sort  of  power.  We  have  heard  much  of  a  very  interesting  nature 
with  relation  to  the  exhaustion  of  pur  natural  resources.  We  are 
now  consuming  in  this  country  practically  half  a  billion  tons  of  coal 
annually.  The  great  part  of  that  coal  is  used  in  the  creation  of  power. 
By  the  consumption  of  approximately  three  hundred  million  tons  ot 
coal  annually  we  are  creating  approximately  twenty-six  million  horse- 
power, which  today  drives  the  machinery  of  our  commerce  and  is  the 
basis  of  our  prosperity.  The  water  powers  of  the  United  States  are 
estimated  at  sixty-six  million  horsepower.  A  little  more  than  five  mil- 
lion horsepower  is  now  being  used.  In  other  words,  we  have  now  un- 
developed and  going  to  waste  practically  double  as  much  power  as 
we  are  getting  from  the  use  of  the  great  part  of  all  the  coal  which  we 
are  now  mining.  If  the  day  shall  come  when  the  coal  reserves  shall 
become  exhausted,  and  certainly  the  day  will  come  when  coal  will 
become  increasingly  more  expensive  as  we  exhaust  the  more  easily 
mined  reserves,  when  that  day  comes  our  water  powers  will  be  increas- 
ingly valuable  because  of  the  higher  cost  of  power  as  measured  by  the 
advanced  cost  of  coal  production.  When  that  time  comes  our  water 
powers  will  be  the  greatest,  asset  of  the  West.  Were  it  possible  for  water 
power  combinations  to  get  together  and  fix  exorbitant  prices  which 
power  users  must  pay,  with  no  other  way  to  carry  on  their  industries 
except  to  pay  the  price,  then  I  would  agree  absolutely  with  the  most 
radical  conservationist  who  ever  lived;  but  I  insist  it  is  not  true.  The 
creation  of  a  water  power  monopoly  in  the  West  is  absolutely  impos- 
sible except  as  a  result  of  the  absolute  failure  of  us  in  the  West  to  per- 
form our  civic  duty.  (Applause.)  And  why?  Because  our  state  con- 
stitutions and  the  enabling  acts  upon  which  those  constitutions  were 
based,  in  practically  all,  if  not  all  of  our  arid  land  states,  provide  that 
the  use  of  the  waters  within  these  states  "Shall  forever  belong  to  the 
people  thereof." 

That  clause  was  put  in  our  constitution  not  in  anticipation  of 
meeting  this  question,  but  because  in  the  West,  as  a  matter  of  self- 
preservation  and  as  a  matter  of  necessity,  we  had  to  abolish  the  law 
of  riparian  rights,  which  provides  that  any  owner  of  land  crossed  by 
a  stream  must  permit  the  water  which  comes  upon  his  property  to 
pass  from  it  undiminished  in  quantity  and  undiluted  in  quality.  The 
law  of  riparian  rights  requires  that.  In  the  arid  land  states  this  law 
was  abolished. 


84  OFFICIAL    PROCEEDINGS 

I  have  had  the  pleasure  of  sitting  as  a  student  at  the  feet  of  the 
man  who  was  hung  in  effigy  because,  as  a  judge,  he  declared  for  that 
principle,  the  principle  which  gave  the  people  the  right,  in  order  to 
preserve  their  lives,  to  take  the  water  away  from  its  regular  channel 
for  the  irrigation  of  the  land  and  thus  make  it  productive  of  the  neces- 
sities of  life.  When  the  late  Judge  Victor  A.  Elliot  as  a  member  of  the 
Supreme  Court  of  Colorado  first  laid  down  that  doctrine  in  the  State 
of  Colorado  he  was  severely  criticized  because  his  decision,  based  on 
the  law  of  necessity,  set  aside  a  law  which  had  been  honored  through 
all  the  years,  the  law  of  riparian  rights.  Judge  Elliot  was  the  first  to 
set  aside  that  law  in  order  that  we  might  develop  the  civilization  in 
the  West  of  which  we  are  now  so  proud.  Other  courts  followed  this 
decision  and  it  became  the  settled  law  of  the  territories,  was  embodied 
in  the  enabling  acts  and  became  a  part  of  our  State  constitutions.  This 
declaration  that  the  use  of  the  water  "shall  forever  belong  to  the  people 
thereof"  creates  a  public  utility  at  all  times  subject  to  the  control  of 
the  State  Legislatures  and  can  never  be  the  subject  of  monopoly 
except  during  such  time  as  the  people  of  any  State  may  neglect  their 
political  and  civic  duty.  This  constitutional  provision  effectually  breaks 
down  the  pretense  that  Federal  control  is  necessary  to  protect  the 
people  of  the  States  from  a  dangerous  monopoly  controlled  by  a  great 
water  power  trust. 

The  law  concerning  the  rights  of  way  over  the  public  domain 
had  been  based  upon  the  theory  that  the  public  ownership  of  land  was 
not  more  sacred  than  private  ownership.  Private  ownership  is  always 
subject  to  condemnation  for  a  right  of  way  for  the  construction  of  any 
public  utility.  If  you  were  unwilling  to  allow  a  railroad  or  an  irriga- 
tion ditch  a  right  of  way  over  your  land,  the  applicant  might  take  your 
land  for  such  public  utility  under  the  right  of  eminent  domain.  But 
actions  do  not  lie  against  the  Federal  Government,  and  therefore  we 
cannot,  or  at  least  we  have  been  led  to  believe  that  we  cannot  condemn 
a  right  of  way,  over  the  public  domain.  Recognizing  that  principle, 
Congress  many  years  ago,  with  reference  to  rights  of  way  for  irrigation 
ditches,  enacted  that  "a  right  of  way  is  hereby  granted"  to  applicants 
under  certain  rules.  It  was  provided  that  the  Secretary  of  the  Interior 
should  ministerially  pass  upon  the  filings,  requiring  a  survey  showing 
the  exact  location  of  this  right  of  way,  for  two  reasons:  First,  that  the 
right  of  way  thus  granted  might  not  be  trespassed  upon  by  some  other 
applicant  who  wanted  the  same  right  of  way,  and  second,  that  a  right 
of  way  thus  granted  across  the  public  domain  should  be  so  described  on 
the  records  that  when  that  particular  piece  of  property  should  be 
granted  to  some  other  individual,  the  grant  might  reserve  the  easement 
with  which  that  land  was  burdened.  That  was  the  reason  why  the 
Secretary  of  the  Interior  was  given  the  right  to  pass  upon  the  filings, 
but  I  insist  that  that  duty  is  purely  ministerial.  During  the  last  few 
years  it  has  been  increasingly  difficult  to  secure  a  right  of  way  for 
public  utilities  over  the  public  domain.  Wherever  the  development  of  a 
water  power  was  anticipated  or  suspected,  rights  of  way  have  been 
refused  or  delayed.  Many  projects  involving  enormous  expenditures 
have  been  delayed  and  crippled.  The  Henrylin  Ditch  Project  in  Colo- 
rado designed  to  irrigate  50,000  acres  of  land,  is  at  a  standstill  after 
something  like  three  million  dollars  has  been  spent  in  the  enterprise, 
and  its  right  of  way  contested.  In  the  state  of  California,  many  years 
ago,  a  ditch  right  and  a  water  right  was  appropriated  by  a  mining  com- 
pany to  operate  a  stamp  mill.  Many  years  after  the  appropriation  of 
the  right  and  the  construction  of  the  ditch,  the  forest  reserve  was 
created  over  a  part  of  the  ditch,  covering  about  three-quarters  of  a 
mile.  A  few  years  ago  the  California  Hydro-electric  Company  under- 
took to  utilize,  to  conserve  the  power  that  was  in  that  water,  and 
make  it  take  the  place  of  coal,  which  on  the  coast  costs  about  twelve 
dollars  per  ton.  They  proposed  to  build  a  reservoir  in  which  to  store 
the  water  and  carry  it  under  pressure  through  a  pipe  and  thus  utilize 
its  power.  We  believe  that  to  be  the  highest  form  of  conservation,  that 


AMERICAN    MINING    CONGRESS  85 

which  puts  to  use  a  thing  which  is  now  going  to  waste.  The  company 
went  to  the  forest  service  as  a  matter  of  courtesy  without  any  thought 
that  the  request  could  be  refused,  and  asked  for  a  right  of  way  across 
that  little  section  of  forest  reserve.  To  their  blank  amazement,  the  per- 
mission was  refused.  They  were  told  that  they  might  have  a  lease  for 
this  right  of  way  but  they  could  not  have  an  easement.  Attorneys  were 
consulted  and  the  attorneys  said  "this  is  your  right — a  right  which  you 
and  your  predecessors  in  interest  have  owned  for  thirty  years.  Lay  your 
pipe."  The  operations  were  begun  but  the  workmen  were  stopped  by 
an  injunction  of  the  Federal  Court.  It  was  proper  enough  that  this 
matter  should  be  taken  into  court,  but  these  gentlemen  knew  it  would 
be  five  or  ten  years  before  this  matter  could  be  finally  decided  in  the 
United  States  Supreme  Court,  that  in  the  meantime  this  enterprise  in 
which  they  had  invested  their  money  and  which  they  hoped  to  make 
useful  to  the  people  of  that  community  would  be  stopped,  and  conse- 
quently they  felt  that  though  the  courts  might  ultimately  give  them 
their  rights,  the  process  was  too  long.  They  felt  that  members  of  Con- 
gress could  not  and  would  not  refuse  to  give  them  a  right  which  is  so 
plain  on  its  face,  and  they  decided  to  go  to  Congress  and  ask  for  an 
approval  of  this  right  of  way.  The  bill  was  introduced  in  Congress  and 
a  strong  fight  was  made  for  it.  It  was  a  very  active  fight  on  both 
sides,  and  when  this  bill  came  to  a  vote  in  the  House  of  Representatives 
of  the  United  States,  you  will  be  greatly  surprised  to  know,  the  ma- 
jority against  the  granting  of  these  rights  was  more  than  four  to 
one.  That  is  an  illustration  of  what  is  being  done  now  to  hold  back 
everything  that  looks  like  a  water  power  until  a  new  law  can  be  provided 
by  Congress  which  will  justify  and  make  legal  things  which  are  now 
being  done,  as  I  insist,  without  authority  of  law.  In  order  that  authority 
for  such  action  might  be  created,  a  bill  was  introduced  in  Congress  late 
last  session,  by  Congressman  Robinson,  now  Governor-elect  of  Arkan- 
sas, providing  that  hereafter  no  right  of  way  across  the  public  domain 
for  any  purpose  shall  be  granted  until  after  the  Secretary  of  the  Interior 
has  given  his  approval.  It  goes  without  saying  that  if  the  Secretary  of 
the  Interior  has  a  right  to  refuse  to  grant  this  privilege,  he  has  a  right 
to  fix  the  conditions  upon  which  he  will  grant  that  privilege,  and  with 
this  law  in  effect  it  will  be  within  his  province,  and  made  legal  for  the 
Secretary  of  the  Interior  to  require  you,  if  you  want  a  right  of  way 
across  any  part  of  our  domain,  to  enter  into  a  contract,  giving  the 
government  the  right  to  forever  control  the  prices  at  which  you  shall 
sell  your  waterpower,  the  amount  to  which  you  shall  develop  it,  when 
you  shall  develop  it,  and  any  other  conditions  which  he  sees  fit  to 
attach.  Now,  I  believe  that  when  those  conditions  are  created,  when 
this  right  of  way  is  revocable  under  certain  conditions,  whenever  it 
appears  to  those  who  are  expected  to  invest  in  such  enterprises,  that  the 
basis  of  the  enterprise  is  a  revocable  permit  in  the  hands  of  some  man 
who  doesn't  understand  the  conditions,  that  no  capital  can  be  induced 
to  develop  these  water  powers  and  therefore  these  conditions,  instead 
of  preventing  monopoly  will  increase  monopoly. 

The  constitutional  provision  that  the  use  of  these  waters  "shall 
forever  belong  to  the  people  thereof,"  places  the  development  of  hydro- 
electric power  into  the  same  class  with  transportation  of  freight  and 
passengers  on  our  railroads.  It  becomes  a  public  utility,  at  all  times 
subject  to  the  control  of  state  legislatures.  If  we  do  not  elect  legisla- 
tures which  protect  us  against  the  monopolistic  control  of  water  power, 
then  we  are  not  entitled  to  protection.  This  proposed  system  of  public 
land  laws,  beginning  with  this  right  of  way  bill  and  followed  by  four 
other  bills  which  have  been  prepared  by  the  same  people,  are  a  great 
menace  to  the  West. 

A  member  of  the  Public  Lands  Committee,  after  he  found  that  I 
had  copies  of  these  proposed  laws,  asked  my  opinion  about  them.  I 
replied,  "I  am  impressed  with  their  importance,  but  I  think  there  should 
be  two  others  to  make  the  series  complete."  "Well,  what  would  they 
provide?"  "The  first  would  provide  that  the  Interior  Department  should 


86  OFFICIAL    PROCEEDINGS 

hereafter  be  authorized  to  pass  appropriation  bills,  and  the  second 
would  abolish  Congress."  This,  gentlemen,  I  consider  the  most  im- 
portant question  which  now  calls  for  your  action. 

MR.  STANARD,  (Seattle):  Mr.  President,  Gentlemen:  I  might 
suggest  that  as  long  as  the  timber  corporations  take  so  kindly  to  con- 
servation and  have  contributed  so  nobly  to  the  twenty  millions  of 
dollars  that  Mr.  Pinchot  says  it  has  cost  to  put  this  curse  on  the  West, 
that  we  advocate  that  the  government  rig  the  national  forests  for 
logging  and  if  necessary  saw  the  logs  in  public  mills,  and  see  how 
long  Mr.  Weyerhauser  will  call  Mr.  Pinchot  by  his  first  name. 

THE  CHAIRMAN:  We  would  like  to  hear  from  anybody  else 
who  has  anything  to  offer  on  this  subject. 

MR.  GALLIGER:  Mr.  President,  owing  to  the  fact  that  there 
might  be  a  great  many  resolutions  to  be  considered,  I  would  suggest 
that  the  Committee  on  Resolutions  be  waited  upon  and  asked  if  they 
have  any  further  matters  for  this  convention  to  take  up  at  this  time. 
There  are  a  great  many  who  desire  to  return  to  their  homes  this  even- 
ing, and  I  know  of  a  number  who  wish  to  depart  in  the  morning,  and 
it  would  be  well  to  expedite  the  business  as  much  as  possible.  There- 
fore, at  this  time  I  suggest  that  we  dispense  with  further  discussion 
on  the  subject  before  the  house  as  there  are  a  number  of  resolutions 
which  will  suggest  a  further  discussion  along  these  lines. 

THE  PRESIDENT:  Has  the  committee  been  in  session  since  its 
former  report? 

MR.  GALLIGER:  Why,  I  supposed  that  they  were. 
MR.  W.  B.  DENNIS,  (Portland,  Oregon):  We  have  heard  a  good 
many  criticisms  on  the  Forestry  Department.  There  is  a  representa- 
tive of  that  department  here,  who  has  not  been  given  an  opportunity  to 
reply,  and  it  seems  to  be  in  order  that  this  gentleman  should  be  called 
upon  to  speak  upon  the  various  questions  and  objections  that  have 
been  made  to  the  operations  of  that  department. 

MR.  GALLIGER:  Mr.  President,  with  your  permission,  the  sug- 
gestion that  I  have  just  made  I  will  put  in  the  form  of  a  motion.  I  move 
you  that  the  discussion  of  this  subject  be  now  closed  and  we  proceed 
with  the  further  consideration  of  the  report  of  the  Committee  on  Resolu- 
tions. 

MR.  ROBERT  NEILL:    I   second  the  motion. 
Motion  carried. 

THE  SECRETARY:  Mr.  Chairman,  if  it  is  in  order  I  would  like 
to  read  two  resolutions  which  have  been  presented  for  the  consideration 
of  the  committee. 

THE   CHAIRMAN:    It  will  be  in  order  while  we  are  waiting. 
Resolution  No.  14,  Introduced  by  C.  W.   Goodale,  Montana. 

Whereas,  Electric  power,  aerial  tramways,  and  pipe  lines,  are 
coming  to  be  of  the  utmost  importance  in  the  development  of  min- 
ing; and 

Whereas,  There  exists  now  no  adequate  provision  for  right  of 
way,  for  such  lines,  across  public  domain  or  private  lands;  and 

Whereas,  This  condition  is  retarding  the  development  of 
hydro-electric  power  and  its  transmission  and  the  growth  of  the 
mining  industry;  therefore,  be  it 

Resolved,  That  it  is  the  sense  of  the  American   Mining  Con- 
gress that  laws   should  be  enacted  extending  the  principle  of  emi- 
nent domain  to  aerial  trams,  electric  lines,  and  to  pipe  lines. 
Resolution  No.  15,  Introduced  by  H.  N.  Lawrie,  Oregon, 
Whereas,   It   is   the  unanimous   opinion   of  this,    the    Fifteenth 
Convention   of   the    American    Mining    Congress    that   the    National 
Bureau    of    Mines    has    conducted    the    research    work,    under    the 
directorship  of  Dr.  Holmes,  particularly  with  reference  to  the  safety 
of  the  miner  in  coal  mines,  in  such  a  manner  as  to  be  a  permanent 
benefit  to  the  mining  industry;  and 

Whereas,  The  National  Bureau  of  Mines  has  undertaken  re- 
search work  to  increase  the  efficiency  of  milling  operations  and 


AMERICAN    MINING    CONGRESS  87 

metallurgical  processes  with  a  view  to  bring  within  the  range  of 
commercial  treatment  large  bodies  of  low  grade  ores  and  tailings; 
and 

Whereas,  The  present  appropriation,  to  carry  out  the  work  of 
the  National  Bureau  of  Mines,  is  not  adequate;  and 

Whereas,  It  is  recommended  by  the  American  Mining  Con- 
gress that  the  future  attention  of  the  National  Bureau  of  Mines  be 
directed  toward  the  prevention  of  accidents  in  metal  mining  opera- 
tions, where  the  percentage  fatality  is  more  than  in  coal  mining, 
and  to  increase  the  efficiency  of  rescue  work;  be  it  therefore 

Resolved,  That  we,  the  American  Mining  Congress,  in  Con- 
vention assembled,  memoralize  Congress  of  the  United  States  to 
increase  this  appropriation  sufficiently  to  enable  the  work  as  herein 
noted  to  be  carried  out  efficiently  by  the  Bureau  of  Mines. 

COL.  W.  T.  PERKINS:  Mr.  Secretary,  may  I  interrupt  you  for  a 
moment.  The  agent  of  the  railroad  company  is  still  waiting  there  and 
he  has  just  a  moment,  so  I  would  suggest  that  the  men  who  have  rail- 
road certificates  turn  in  their  certificates  at  once  as  some  men  wish 
to  leave  tonight,  and  it  will  give  them  an  opportunity  to  do  so. 

THE  CHAIRMAN:  If  there  is  no  objection  we  will  take  a  recess 
for  five  minutes. 

Recess  was  thereupon  taken. 
President  Taylor  then   resumed  the  chair. 

THE  PRESIDENT:  I  want  to  make  an  announcement  that  the 
directors-elect  meet  in  Room  205,  Spokane  Hotel,  at  5:30,  for  organiza- 
tion. There  is  a  question  that  comes  before  the  Congress  at  this  time, 
and  that  is  whether  we  will  have  our  Thanksgiving  exercises  which 
are  on  the  program  for  tomorrow  morning  at  eleven  o'clock,  here  in 
the  building  as  a  congress,  or  whether  we  will  adjourn  and  go  to  the 
churches.  What  is  the  will  of  the  Congress? 

MR.  G.  B.  DENNIS:  Mr.  President,  one  of  the  most  gratifying 
features,  I  think,  of  this  meeting  was  when  the  Mayor  of  Spokane  made 
the  statement  that  this  was  the  first  convention,  within  his  memory,  that 
had  been  opened  with  prayer.  I  believe  that  all  conventions  for  good 
should  be  opened  in  that  way.  I  believe  that  it  is  eminently  befitting 
to  this  convention  and  to  this  society,  that  it  hold  a  Thanksgiving 
service,  and  that  that  service  be  held  here  as  stated  by  our  worthy 
President,  at  eleven  o'clock  tomorrow.  The  delegates,  many  of  them, 
don't  know  where  the  churches  are.  Some  of  them  are  at  considerable 
distance  from  where  they  are  stopping  at  the  hotels,  and  if  they  will 
come  here,  1  think,  Mr.  President,  and  hold  that  service  here,  that  it 
will  be  not  only  enjoyable,  but  noble,  and  I  would  therefore  suggest 
that  the  service  be  held  here 

THE  PRESIDENT:    Are  there  any  other  suggestions? 
It  was  finally  concluded  that  the  meeting  adjourn  to  three  o'clock 
on   Thursday  instead  of  having  Thanksgiving  services  at  the   Armory. 
A  motion  was  put  to  this  effect  and  carried. 

Adjournment  was  taken  until  8  o'clock  p.  m. 

WEDNESDAY  EVENING  SESSION. 
November  27,  1912. 

Meeting  called  to  order  by  President  Taylor,  at  8:30  o'clock. 

THE  PRESIDENT:  Gentlemen  of  the  Congress:  On  account  ot 
Mr.  Stewart  having  to  make  a  train,  we  are  going  to  change  the  pro- 
gram just  a  little  and  have  Mr.  Stewart's  paper  on  transportation  facili- 
ties in  Alaska  at  this  time.  Mr.  Duncan  M.  Stewart  of  Seward,  Alaska, 
will  now  address  the  Congress  and  we  will  have  the  Alaska  discussion 
after  his  address. 

Mr.  Stewart's  address  will  be  found  at  page  of  this  report. 

THE  PRESIDENT:  Gentlemen,  we  will  now  revert  to  the  origi- 
nal program.  The  first  thing  in  order  is  the  presentation  of  resolutions. 


88  OFFICIAL    PROCEEDINGS 

Are  there  any  resolutions  to  be  presented  this  evening?  If  not,  the 
report  of  the  Resolutions  Committee  is  next  in  order.  While  we  are 
waiting  for  them  to  report,  the  Secretary  has  a  resolution  which  he 
desires  to  read. 

Resolution  No.  16,  Introduced  by  J.  F.  Merrill,  Utah. 

Whereas,  The  conservation  of  our  metal  mineral  resources  re- 
quires the  elimination  of  waste  in  the  reduction  of  metal  bearing 
ores  and  the  solution  of  the  problem  of  low  grade  and  refractory 
ore  treatment;  and 

Whereas,  The  solution  of  these  problems  of  conservation  re- 
quires extended  scientific  research,  in  a  field  having  as  many  sub- 
divisions as  there  are  special  types  of  ore  to  be  treated;  and 

Whereas,  There  are  special  ore  problems  in  practically  every 
mining  state;  and 

Whereas,  The  Bureau  of  Mines  is  now  extending  its  field  to 
include  metallurgical  research  work;  and 

Whereas,  Experience  has  shown  the  wisdom  of  co-operation 
between  the  General  Government  and  the  States  in  agricultural  in- 
vestigations by  means  of  the  experiment  stations  of  the  State  Agri- 
cultural Colleges;  and 

Whereas,  Efficiency,  economy  and  fruitfulness  would  all  be 
subserved  in  metallurgical  investigations  by  co-operation  between 
the  General  Government  and  the  mining  states;  now,  therefore,  be  it 

Resolved,  That  Congress  and  the  Bureau  of  Mines  be  and  are 
hereby  urged  to  co-operate  with  those  mining  states  desiring  such 
co-operation  in  the  maintenance  of  metallurgical  research  stations 
at  the  various  state  mining  schools. 

Resolution  No.  17,  Introduced  by  H.  M.  Parks  and  Francis 
Thompson. 

Whereas,  This  Congress  has  previously  endorsed  the  principle 
of  Federal  aid  to  State  mining  schools;  therefore,  be  it 

Resolved,  That  the  American  Mining  Congress  again  urges 
immediate  passage  by  Congress  of  the  legislation  now  pending,  pro- 
viding for  Federal  assistance  to  the  various  state  mining  schools. 

MR.  H.  F.  SAMUELS:  Mr.  President,  the  Committee  on  Resolu- 
tions is  not  ready  to  report.  The  sub-committee  is  very  busy  and  has 
been  trying  to  rush  through  the  resolutions.  The  committee,  the  main 
committee,  will  be  able  to  report  tomorrow  morning. 

THE  PRESIDENT:  We  have  by  motion  passed  the  morning  ses- 
sion and  will  convene  at  three  o'clock  tomorrow  afternoon.  That  will 
give  the  Resolutions  Committee  time  to  finish  its  work. 

The  next  thing  in  order  is  the  report  of  Falcon  Joslin  of  Fair- 
banks, Alaska,  "The  Needs  of  Alaska." 

Mr.  Joslin's  address  will  be  found  at  page  of  this  report. 

MR.  T.  P.  McDONALD :  Mr.  President,  I  wish  to  move  the 
approval  and  adoption  of  the  report  and  the  discharge  of  the  committee, 
that  the  Congress  extend  its  thanks  for  the  earnest  and  tireless  work 
it  has  done  in  the  effort  to  secure  legislation  for  the  development  of 
Alaska. 

Motion  seconded. 

THE  PRESIDENT:  I  hardly  know  what  to  do  with  that  motion. 
I  don't  know  as  it  is  time  to  discharge  that  committee. 

MR.  McDONALD:    I  had  been  informed  that  that  was  usual. 

THE  PRESIDENT:  I  presume  the  committee  will  die  until 
another  committee  is  appointed,  at  the  same  time  knowing  of  the  work 
this  committee  has  done.  I  hesitate — 

MR.  McDONALD:  Let  me  eliminate,  then,  the  part  referring  to 
the  discharging  of  the  committee,  but  I  had  been  informed  that  that 
was  usual. 

Motion  carried. 


AMERICAN    MINING    CONGRESS  89 

THE  SECRETARY  read  resolutions  Nos.  18,  19  and  21  as  follows: 
Resolution  No.  18,  Introduced  by  T.  P.  McDonald,  Seattle,  Wash. 

Resolved,  That  the  President  be  authorized  to  appoint  a  Com- 
mittee on  Alaskan  Affairs  who  shall  be  subject  to  the  direction  of 
the  Executive  Committee,  and  who  shall  be  especially  instructed  as 
follows: 

First:  To  give  the  widest  publicity  to  the  deliberations  of  the 
American  Mining  Congress  on  Alaskan  questions,  and  to  the  de- 
plorable condition  prevailing  in  Alaska,  by  reason  of  the  lack  of 
ability  to  develop  Alaska's  varied  resources,  by  reason  of  the  lack 
of  transportation  facilities  and  the  tying  up  of  Alaskan  fuel  re- 
sources; 

Second:  To  urge  upon  the  Administration  and  Congress, 
prompt  measures  of  relief  in  conformity  with  the  views  of  the 
American  Mining  Congress,  and  to  work  for  the  immediate  passage 
of  the  best  possible  law  that  can  be  secured  in  the  interests  of  the 
United  States  and  of  Alaska  that  will  permit  the  immediate  develop- 
ment of  its  varied  resources,  and  to  secure  the  aid  of,  and  co-operate 
with,  any  other  individual  bodies  or  corporations  found  honestly 
striving  to  the  same  proper  end; 

Third:  That  any  law  so  passed,  shall  recognize  the  rights  of 
existing  claimants  by  providing  for  the  immediate  adjudication  of 
their  rights  in  the  District  Courts;  and,  be  it  further 

Resolved,  That  this  Committee  is  authorized  and  directed  to 
work  to  obtain  the  construction  of  railways  for  the  development 
of  Alaska  without  further  delay.  That  they  shall  work — 

First:  To  secure  the  removal  of  existing  obstacles  and  restric- 
tions to  the  construction  of  railways  in  Alaska,  and 

Second:  Work  to  procure  the  aid  and  co-operation  of  the 
Government  for  the  construction  of  at  least  two  trunk  lines  of  rail- 
road to  connect  with  the  seaboard  the  two  great  minor  systems  of 
Alaska,  with  this  emphatic  proviso  that  if  the  Government  will  not 
aid  and  assist  such  construction  that  the  Committee  shall  urge  the 
passage  of  such  measures  as  will  bring  about  such  construction  by 
the  Government  itself. 

Resolution  No.  19,  Introduced  by  Clarence  Rae,  Montana. 

Whereas,  The  Government  of  the  United  States,  at  large  ex- 
pense, endeavors  to  gather  statistics  covering  the  production  of 
metals,  which  statistics  are  more  or  less  unreliable;  and 

Whereas,  Much  complaint  is  made  by  producers  of  ore  sold  to 
the  smelters,  that  the  assay's  value  of  such  ores,  made  by  the  smelt- 
ing companies,  does  not  accord  the  full  value  of  such  ores  to  the 
producers;  and 

Whereas,  The  establishment  of  government  sampling  works  at, 
or  near,  all  custom  smelters,  to  which  all  ores  could  be  delivered, 
intended  for  such  smelting  plants,  would  create  a  system  through 
which  more  correct  statistics  could  be  gathered,  and  at  the  same 
time,  protect  the  ore  producer  against  unfair  assays  upon  his  ores; 
therefore,  be  it 

Resolved,  That  the  Legislative  Committee  of  the  American 
Mining  Congress  be  instructed  to  formulate  a  bill  providing  for  the 
erection  and  maintenance  of  such  Government  Sampling  Works  as 
may  be  necessary  to  accomplish  the  purpose  herein  outlined,  such 
Sampling  Works  to  be  under  the  management  and  control  of  the 
National  Bureau  of  Mines. 

Resolution  No.  21,  Introduced  by  J.  M.  Malang,  Missouri. 

Whereas,  The  lead  and  zinc  mining  industries  of  the  United 
States  constitute  a  great  productive  industry,  employing  many  thou- 
sands of  men,  and  this  development  in  turn  has  created  many  other 
industrial  enterprises  of  vast  importance  to  the  country  at  large;  and 


90  OFFICIAL    PROCEEDINGS 

Whereas,  The  existing  tariff  duties  on  lead  and  zinc  ores  have 
been  demonstrated  to  be  less  than  the  actual  difference  between  the 
cost  of  production  here  and  in  competing  countries;  and 

Whereas,  Any  reduction  of  the  present  rates  of  duty  would 
result  in  the  closing  down  of  many  mines  that  are  now  being  profit- 
ably operated,  thereby  depressing  industry,  destroying  values,  and 
throwing  labor  out  of  employment,  and  would  also  discourage  pros- 
pecting and  retard  the  development  of  the  mineral  resources  of  the 
country;  and 

Whereas,  The  duties  now  levied  upon  the  imported  lead  and 
zinc  ores  are  fully  justified  as  revenue  producing  measures;  and 

Whereas,  The  lead  ores  in  the  smelting  of  refractory  gold  ores 
in  the  gold  producing  states  is  an  absolute  essential,  and  any  burden 
placed  upon  the  lead  industry  will  increase  the  cost  of  gold  produc- 
tion; and 

Whereas,  The  prevailing  high  level  of  production  costs,  in- 
cluding wages,  mining  machinery  and  mining  supplies,  is  gradually 
increasing,  while  the  value  of  the  gold  remains  stationary,  and  in 
consequence  of  which  the  production  of  gold  from  low  grade  refrac- 
tory ores  is  being  greatly  hampered;  and 

Whereas,  Neighboring  countries,  where  the  cost  of  labor,  ma- 
chinery and  supplies  is  very  much  less  than  in  the  United  States, 
are  able  to  produce  lead  ores  at  so  much  less  cost  as  to  enable 
them  to  displace  the  use  of  domestic  lead  ores  in  the  markets  of  the 
United  States,  and  thereby  make  impossible  the  production  of 
those  lead  ores  essential  to  the  smelting  of  gold  ore,  which,  in  turn, 
will  have  the  necessary  effect  of  greatly  restricting  the  production 
of  gold  in  the  United  States;  now,  therefore,  be  it 

Resolved,  That  the  American  Mining  Congress  believes  that 
the  best  interests  of  the  nation  demand  that  the  tariff  on  lead  be  not 
reduced,  because  any  such  reduction  would  diminish  the  production 
of  gold  which  is  the  basis  money  of  this  country, 

That  the  American  Mining  Congress  reaffirms  its  prior  dec- 
larations favoring  the  retention  of  the  present  tariff  duties  on  lead 
and  zinc  ores,  and  pledges  its  efforts  to  prevent  any  reduction 
thereof 

THE  PRESIDENT:  In  connection  with  the  discussion  of  Alaska 
and  its  needs,  the  next  paper  will  be  by  Mr.  George  E.  Baldwin  of 
Valdez,  Alaska. 

Mr.  Baldwin's  paper  will  be  found  at  page  of  this  report. 

THE  PRESIDENT:  The  next  paper  on  the  subject  is  one  by  Mr. 
Maurice  D.  Leehey. 

Mr.  Leehey's  paper  will  be  found  at  page of  this  report. 

THE  PRESIDENT:  The  Secretary  has  an  announcement  to  make. 
THE  SECRETARY:  I  would  like  to  suggest  to  the  Convention 
that  it  is  easily  possible  to  get  through  with  the  rest  of  our  program 
tomorrow  and  adjourn  if  the  Convention  would  like  to  do  so.  There  is 
enough  work  to  be  done  but  if  the  Convention  desires  it,  by  reading 
some  of  the  papers  by  title  we  can  get  through  tomorrow. 

COLONEL  W.  T.  PERKINS:    I  move  that  when  we  adjourn  at 
the  close  of  tomorrow's  session  we  adjourn  sine  die. 
Motion  seconded  and  carried. 

THE  PRESIDENT:  We  have  two  more  papers  on  this  subject 
tonight.  The  next  one  is  by  Mr.  T.  P.  McDonald  of  Seattle. 

MR.  T.  P.  McDONALD:  Mr.  President  and  gentlemen:  Owing 
to  a  most  unfortunate  occurrence  I  will  be  unable  to  deliver  that  address. 
I  prepared  it  and  brought  it  over  but  one  of  the  boys  stole  it  from  my 
room  and  it  has  already  been  delivered. 

THE  PRESIDENT:  I  suggest  that  he  return  it  to  the  record  and 
have  it  filed.  The  next  one  is  by  Mr.  William  Griffith,  of  Scranton,  Pa., 
but  he  is  not  here. 

THE  SECRETARY:  I  have  Mr.  Griffith's  paper  and  I  suggest  that 
it  be  read  by  title  and  printed  in  the  proceedings. 


AMERICAN    MINING    CONGRESS  91 

THE  PRESIDENT:    With  no  objection  that  will  be  done. 

Mr.  Griffith's  paper  will  be  found  at  page  of  the  report. 

THE  PRESIDENT:  There  is  another,  and  I  think  that  will  finish 
the  business,  Mr.  Henry  R.  Harriman,  of  Seattle. 

MR.  HENRY  R.  HARRIMAN:  Mr.  President,  ladies  and  gentle- 
men: I  never  rise  before  this  Congress  that  I  don't  feel  like  moving  an 
amendment  to  the  constitution  or  by-laws  of  this  Congress  whereby 
when  we  rise  to  address  the  Mining  Congress,  we  shall  say,  "Mr.  Presi- 
dent, Mr.  Secretary,  Ladies  and  Gentlemen."  I  have  had  the  pleasure 
of  working  with  Mr.  Callbreath  and  of  being  with  him  in  Washington 
during  the  three  years  that  I  have  been  on  various  committees  of  the 
Congress.  Some  day  I  want  to  take  about  a  year  oft"  to  write  what  I 
think  about  the  Secretary  of  this  Mining  Congress  and  I  don't  think 
it  should  appear  in  the  record. 

We  have  heard  a  great  deal  today,  and  we  have  had  the  lecture  last 
night,  and  the  pictures,  and  on  three  different  occasions  I  have  had  the 
honor  of  addressing  the  American  Mining  Congress  on  the  question  of 
Alaska.  A  year  ago  at  this  time  I  presented  a  paper  in  which  I  en- 
deavored to  bring  public  opinion  to  the  support  of  a  new  policy  for 
Alaska,  and  I  think  we  are  getting  that  enlightenment  today.  One  of 
the  best  things  about  this  Congress  is  the  large  number  of  Eastern 
people  that  have  come  here.  We  have  had  the  pleasure  of  entertaining 
a  number  of  Congressmen  who  will  go  back  to  Congress  and  tell  what 
they  saw.  We  have  here  a  number  of  men  whom  I  think  we  would  like 
to  hear.  When  you  get  the  published  proceedings  of  the  American 
Mining  Congress  you  will  doubtless  read  a  very  clever  paper  about 
Alaska  by  your  humble  servant.  I  would  like  to  give  my  time  to  some 
other  men  in  the  Convention.  I  think  also  it  would  be  wise  if  we  were 
to  resolve  ourselves  into  a  Committee  of  Ways  and  Means.  We  have 
one  man  here,  though,  whom  I  would  like  to  call  upon  if  he  has  not 
already  gone.  I  would  like  to  ask  him  to  suggest  how  we  are  going  to 
get  at  this  thing  and  get  these  things  before  the  American  people  so  as 
to  proceed  in  the  right  way.  May  we  hear  from  Mr.  Ross? 

THE  PRESIDENT:  Mr.  Ross  just  left  a  little  while  ago.  I  don't 
think  he  came  back.  I  don't  see  him  in  the  audience. 

MR.  HARRIMAN:  Then  I  would  like  to  yield  this  time  that  re- 
mains to  such  remarks  and  suggestions  as  may  be  made  by  the  members 
present. 

THE  PRESIDENT:  We  will  now  hear  any  remarks  that  any  per- 
son might  wish  to  make  on  this  subject.  Be  as  prompt  as  possible.  It 
is  growing  late  and  we  would  like  to  finish  up  this  session. 

THE  SECRETARY:  Mr.  President:  A  gentleman  has  just  sug- 
gested to  me  that  the  great  entertainment,  the  Diggin's,  which  has  been 
prepared  by  the  people  of  Spokane  at  very  great  expense,  the  special 
entertainment  was  provided  for  Friday  night.  An  adjournment  tomorrow 
night  would  hardly  be  fair  to  those  who  have  prepared  that  entertain- 
ment. I  think  that  is  a  matter  worthy  of  consideration  at  this  time. 

COL.  W.  T.  PERKINS:  Mr.  President,  can  we  reconsider  our 
motion  to  adjourn? 

THE  CHAIRMAN:     Yes,  sir. 

COLONEL  W.  T.  PERKINS:  I  move  that  the  motion  to  adjourn 
be  reconsidered  and  that  we  proceed  with  our  regular  order  of  business. 

Motion  seconded  and  carried. 

THE  CHAIRMAN:  We  now  stand  adjourned  until  three  o'clock 
tomorrow  afternoon. 

THURSDAY,  NOVEMBER  28,  1912. 
Afternoon  Session. 

President  Taylor  called  the  meeting  to  order  at  3:30  p.  m. 
THE  PRESIDENT:    The  first  thing  in  order  is  the  presentation 
of  resolutions.     Are  there  any  resolutions? 


92  OFFICIAL    PROCEEDINGS 

THE  SECRETARY:  May  I  make  a  statement?  The  program 
as  we  had  it  originally  outlined,  provided  for  a  discussion  of  the  ques- 
tion of  workmen's  compensation  today.  Mr.  Wallace,  who  is  one  of 
the  members  of  the  Washington  Industrial  Commission,  was  to  have 
been  here  today  to  discuss  that  question  and  also  Mr.  J.  W.  Wardrop  of 
Pittsburgh,  Pa.,  who  had  charge  of  the  rescue  work  and  the  care  of 
the  unfortunates  at  the  terrible  Marietta  disaster  in  Pennsylvania  three 
years  ago.  I  have  had  no  word  from  Mr.  Wardrop,  but  I  still  hope  that 
he  may  be  here.  It  has  been  suggested  that  we  put  the  whole  discus- 
sion of  this  subject  over  for  tomorrow's  programme.  It  is  a  very  in- 
teresting subject,  a  subject  that  is  of  great  interest  to  both  employers 
and  employees.  The  subject  will  be  discussed  by  Mr.  David  Ross,  of 
Illinois,  State  Labor  Commissioner,  by  Mr.  John  H.  Wallace  of  the 
Washington  Industrial  Commission  and  others,  and  a  paper  by  Mr.  E. 
T.  Bent  of  Chicago,  together  with  the  extempore  remarks  which  I  think 
the  experience  of  the  week  justifies  us  in  saying  will  equal  the  best 
prepared  papers.  That  will  be  the  principal  subject  for  discussion  to- 
morrow, which,  in  addition  to  the  final  report  of  the  Resolutions  Com- 
mittee, will  constitute  the  day's  work. 

THE  PRESIDENT:  The  next  is  the  report  of  the  Resolutions 
Committee. 

MR.  C.  S.  JOHNSON,  (Ohio):  We  are  very  busy  and  we  would 
like  to  ask  the  Secretary  to  read  these  reports  for  us. 

THE  SECRETARY:  Mr.  Ross  has  a  resolution  which  he  would 
like  to  have  introduced.  I  think  it  would  be  proper  to  install  him  as 
Secretary  while  he  is  reading  it,  as  it  is  in  his  handwriting. 

THE  PRESIDENT:  Mr.  Ross  will  read  a  resolution  which  he 
desires  to  present,  before  we  have  this  Committee  report. 

MR.  DAVID  ROSS:  Gentlemen,  as  announced  by  Secretary  Call- 
breath,  this  question  will  be  discussed  tomorrow.  We  will  hear  from 
one  of  the  members  of  the  Washington  commission  charged  under  the 
law  of  this  state  with  the  administration  of  the  act  relating  to  injuries 
of  workingmen  and  the  benefits  of  compensation  provided  for  all  classes 
of  injuries.  We  shall  have  an  opportunity  I  presume  sometime  during 
the  day  to  discuss  some  of  the  important  phases  of  this  question. 

Now,  I  was  in  hopes  that  Brother  Callbreath  would  have  prepared 
a  suitable  resolution  for  action  by  the  Committee,  but  he  is  busy;  in 
fact,  he  is  working  all  the  time.  Now,  I  have  hurriedly  scratched  a  few 
words  on  this  subject,  not  that  I  intended  it  to  be  the  sense  of  the 
Congress  but  that  the  Committee  on  Resolutions  may  change  it  in  such 
a  manner  as  it  may  desire.  I  have  outlined  here  what  I  think  in  a 
general  way  ought  to  be  the  attitude  of  this  Congress  upon  this  im- 
portant question. 

Resolution  No.  22,   Introduced  by   David   Ross,   Illinois. 

Whereas,  Two  years  ago  the  interests  represented  by  this 
Congress  declared  in  favor  of  the  enactment  of  laws  providing  ade- 
quate compensation  for  all  injuries,  fatal  or  otherwise,  occurring  to 
those  employed  in  dangerous  occupations;  and 

Whereas,  Several  States  of  this  Union  have  since  passed  laws 
recognizing  the  principle  endorsed  by  this  Congress,  that  the 
financial  expense  incident  to  an  equitable  compensation  plan  is  a 
legitimate  charge  against  all  forms  of  productive  industry;  there- 
fore, be  it 

Resolved,  That  we  renew,  and  emphasize,  our  former  declara- 
tions of  faith  in  the  just  demands  of  the  wage  workers  in  this  im- 
portant matter,,  and  pledge  our  co-operation  to  the  end  that  in  both 
State  and  Nation  comprehensive  compulsory  laws,  broad  enough 
in  their  provisions  to  cover  every  case  of  industrial  accident,  shall 
be  enacted,  and  that  all  legislation  of  this  character  shall  be  so 
framed  as  to  provide,  and  absolutely  insure,  the  payment  of  ade- 
quate benefits  to  all  injured,  and  the  families  of  those  killed,  while 
in  the  line  of  their  respective  employment. 


AMERICAN    MINING    CONGRESS  93 

THE  PRESIDENT:  The  Secretary  will  read  the  report  of  the 
Resolutions  Committee. 

THE  SECRETARY:  Resolution  No.  7  introduced  by  the  Butte 
section  of  the  American  Mining  Congress,  recommended  by  the  com- 
mittee for  adoption,  amended  as  follows: 

Resolution  No.  7. 

Whereas,  A  great  injustice  has  frequently  been  worked  upon 
the  legitimate  prospector  and  mine  owner  by  fakirs  and  wild- 
catters, and 

Whereas,  A  number  of  states  are  now  considering  the  advis- 
ability of  placing  upon  their  statutes  a  law  governing  and  controlling 
the  sale  of  stocks  and  bonds  within  said  states,  and 

Whereas,  If  a  just,  equitable  and  comprehensive  law  can  be 
adopted  in  the  various  states,  especially  the  mining  states,  that  will 
safeguard  the  interests  of  the  legitimate  promoter,  mine  owner  and 
investor,  we  feel  that  it  would  tend  to  place  the  exploitation  of  the 
legitimate  mining  enterprises  upon  a  more  substantial  basis  and 
higher  plane.  Thousands  of  prospects  can  be  developed  into  profit- 
able mining  enterprises  if  sufficient  capital  can  be  secured.  The 
necessary  capital  can  be  secured  as  soon  as  the  investor  can  be 
assured  that  the  enterprise  is  legitimate  and  worthy;  therefore,  be  it 

Resolved,  That  a  committee  be  appointed  whose  duty  it  shall 
be  to  gather  information  upon  the  subject,  ascertain  the  laws  now 
upon  the  statute  books  in  the  various  states  of  the  Union,  submit 
all  data  to  the  next  session  of  the  American  Mining  Congress,  or 
the  Board  of  Directors  for  appropriate  action,  and  furnish  such  in- 
formation to  the  various  legislative  assemblies  and  work  in  con- 
junction with  the  Secretary  of  the  American  Mining  Congress,  and 
aid  him  in  furthering  interests  of  Mining  Industry  along  legislative 
lines. 

THE  CHAIRMAN:  You  have  heard  the  resolution;  what  is 
your  wish? 

On  motion  duly  made  and  seconded  the  resolution  was  adopted. 
THE  SECRETARY     Resolution  No.  10,  introduced  by  Mr.  F.  H. 
Stanard.     The   Committee   reports   that   the   resolution   should   pass   as 
amended. 

Resolution  No.  10. 

Whereas,  The  Mt.  Olympus  National  Monument,  a  reserve  of 
over  600,000  acres  entirely  within  the  Olympic  National  Forest  in 
the  State  of  Washington,  does  not  in  our  opinion  serve  any  useful 
purpose,  as  of  itself  it  affords  no  protection  to  the  elk  which  are 
now  protected  by  state  law,  while  prospecting  and  mining  are  abso- 
lutely prohibited  within  its  borders,  and  the  region  is  believed  to 
possess  mineral  wealth  worthy  of  exploration;  therefore  it  is 

Resolved,  That  the  American  Mining  Congress  favors  the  sug- 
gestion that  the  said  Mt.  Olympus  National  Monument  be  abolished 
and  the  area  restored  to  the  Olympic  National  Forest  which  will 
amply  protect  the  scenic  value  of  the  region  without  prohibiting 
prospecting  and  mining. 

THE  PRESIDENT:  You  have  heard  the  reading  of  the  resolu- 
tion, what  is  your  desire? 

On  motion  duly  made  and  seconded,  the  resolution  was  adopted. 
MR.  F.  H.  STANARD:  Mr.  President,  the  resolution  that  has 
just  passed  is  of  considerable  interest  to  Western  Washington,  and  as 
it  will  come  up  in  Congress  and  is  now  a  measure  in  Congress,  I  have 
prepared  a  paper  that  gives  the  facts  concerning  this  creation  and  what 
it  is  and  what  it  is  not  and  I  would  like  for  the  sake  of  the  information 
that  it  will  give  to  the  mining  men  of  the  United  States  to  have  this 
paper  read  by  title  and  printed  with  the  proceedings  as  a  matter  of 
information. 


94  OFFICIAL    PROCEEDINGS 

MR.  ROBERT  NEILL:  I  would  like  to  know  what  goes  in  this 
record,  Mr.  President,  and  I  would  like  to  have  it  read  as  a  whole 
if  it  is  going  into  the  record.  May  we  have  it  all?  Now,  this  may  go 
into  the  record  and  it  may  not,  with  the  endorsement  of  the  members 
of  the  American  Mining  Congress.  Let  us  have  it  all.  Then  we  will 
know  whether  it  should  be  printed  with  it  or  not. 

THE  PRESIDENT:  I  wish  to  state  that  any  paper  which  is  pre- 
sented goes  into  the  record,  but  it  doesn't  necessarily  follow  that  the 
American  Mining  Congress  gives  its  sanction  to  all  that  is  in  the  paper. 

MR.  ROBERT  NEILL:  We  might  expunge  it,  Mr.  President,  if 
it  is  not  right.  We  would  like  to  have  it  read. 

MR.  F.  H.  STANARD:  It  is  very  short.  It  is  only  about  three 
pages. 

THE   PRESIDENT:    We  will  hear  it,  then, 

MR.  STANARD:  Setting  aside  the  Mt.  Olympus  Nat'l  Monu- 
ment in  the  Olympic  Nat'l  Forest  on  the  Olympic  Peninsula  in  the 
northwestern  part  of  the  state  of  Washington  as  a  hermetically  closed 
reserve,  was  an  illegal  attempt  to  make  final  political  disposition  of  a 
practically  unknown  region. 

This  reserve  inside  of  a  reserve  as  it  stands  today  is  a  monument 
to  ignorance  and  was  created  for  the  sole  purpose  of  gratifying  the 
vanity  of  a  "Self  Admiration  Society"  that  call  themselves  "The  Moun- 
taineer Club  of  Seattle"  and  Congressman  Wm.  E.  Humphrey.  Imme- 
diately preceding  the  creation  of  the  monument  they  tried  to  make  a 
national  game  reserve  of  this  608,640  acres  and  on  account  of  the  fact 
that  this  bill  excluded  mining  it  was  billed  in  Congress.  In  their 
frantic  effort  to  get  something  created  to  their  honor  and  glory  and  to 
show  their  contempt  for  Congress,  they  were  not  particular  as  to 
whether  their  acts  were  legal  or  illegal. 

They  used  the  act  for  the  preservation  of  American  Antiquities  and 
compounded  a  felony  when  they  made  a  herd  of  elk  answer  for  archeo- 
logical  sights,  objects  of  antiquity,  pre-historic  ruins  and  objects  of 
unusual  scientific  interest. 

It  is  evident  that  they  were  aware  that  they  could  not  get  a  game 
reserve  established  by  proclamation,  but  they  figured  on  the  limited 
number  of  people  who  know  that  the  game  of  the  state  belongs  to  the 
state  and  is  subject  to  the  regulations  of  Congress  and  the  Legislature 
only. 

Fearful  of  having  to  immediately  face  the  consequences  of  their 
crooked  work  they  had  the  first  press  dispatches  from  Washington  say 
that  the  Monument  did  not  interfere  with  prospecting  and  mining.  This 
is  a  matter  of  record  on  the  files  of  the  daily  papers  at  Seattle. 

Congressman  Wm.  E.  Humphrey  has  admitted  that  with  the  help 
of  Gifford  Pinchot  he  was  able  to  stop  the  exploration  and  development 
of  the  economic  resources  of  a  thousand  square  miles  in  the  Olympics 
in  hope  of  being  able  to  make  a  National  Park  of  it  at  some  future  time. 

This  they  started  to  do  in  the  special  session  of  Congress  in  1911. 
They  were  going  to  open  up  the  country  to  mining  just  as  it  was  in 
other  National  Parks  and  at  the  same  time  tried  to  get  their  fingers  on 
another  150,000  acres  of  land. 

At  the  Bremerton  meeting  of  the  Olympic  peninsula  commercial 
organizations  they  asked  for  the  abolishment  of  the  monument  and 
went  on  record  against  the  proposed  national  park.  Mr.  Wm.  E. 
Humphrey  was  there  and  assured  the  convention  that  he  could  quickly 
relieve  the  situation  and  open  the  country  to  development  through  his 
National  Park  Bill,  the  convention  voted  to  give  his  bill  a  chance  and 
it  might  have  ended  here  but  for  a  special  committee  consisting  of 
Asohel  Curtis  of  Seattle's  New  Chamber  of  Commerce,  C.  J.  Kelly  of 
the  Seattle  Commercial  Club,  and  the  author,  who  visited  Mr.  Humphrey 
and  insisted  that  the  upper  Quinrault  river  settlement,  which  is  now 
isolated  inside  of  the  present  Monument  with  no  hope  for  the  future 
under  present  conditions  but  to  live  in  a  wilderness,  be  eliminated  from 
the  proposed  park  and  that  the  billions  of  feet  of  timber  in  the  south 


AMERICAN    MINING    CONGRESS  95 

and  west  side  should  be  eliminated.  At  this  conference,  Mr.  Humphrey 
asked  this  committee  to  draft  a  boundary  for  the  proposed  national  park 
and  give  the  reasons  for  placing  the  boundary  where  we  did. 

Instead  of  taking  arbitrary  action  and  depending  on  our  own 
knowledge,  the  whole  matter  and  months  were  spent  by  not  only  our 
committee,  but  others,  and  many  individuals  in  an  exhaustive  campaign 
of  inquiry  giving  special  attention  to  the  number,  distribution,  and  feed- 
ing grounds  of  the  elk.  We  obtained  much  valuable  information  among 
which  we  found  that  to  protect  the  elk  by  reservation  meant  the  pro- 
tection of  their  winter  feeding  grounds,  which  coincides  with  the  heavi- 
est and  most  valuable  stands  of  timber  on  the  peninsula.  We  eliminated 
the  land  suitable  for  agriculture,  the  Quinrault  river  settlement  and  at 
least  six  billion  B.  M.  feet  of  merchantable  timber  included  in  the 
present  monument,  and  at  that,  submitted  an  area  of  334,080  acres.  Our 
report  was  rigidly  inspected  and  our  committee  questioned  by  special 
committees  and  at  last  reluctantly  indorsed  by  the  commercial  organ- 
izations of  western  Washington  with  the  distinct  and  expressed  under- 
standing that  the  bill  for  the  creation  of  any  national  park  in  that 
region  must  conform  in  detail  to  the  report  submitted. 

This  report  was  submitted  to  the  Mountaineers'  Club  and  at  the 
last  minute  and  by  special  request  we  received  a  carbon  copy  of  some 
special  committee  on  the  subject,  that  had  neither  heading  nor  signa- 
tures. An  anonymous  communication  that  shows  a  rank  ignorance  of 
anything  pertaining  to  mountain  affairs. 

This  they  followed  by  a  second  unanimous  communication  to  their 
members  asking  them  to  put  all  the  support  possible  behind  the  per- 
nicious measure  that  would  isolate  a  settlement,  lose  to  the  countries  on 
the  peninsula  any  chance  of  realizing  on  billions  of  feet  of  timber  and 
putting  the  mining  industry  at  the  mercy  of  some  department  clerk  at 
Washington. 

With  thousands  of  miles  of  mountain  scenery  in  three  directions 
there  is  no  call  for  a  second  national  park  in  western  Washington  and 
as  for  improvement,  mining  will  build  more  roads  and  trails  into  that 
range  in  ten  years,  than  could  be  expected  from  Congress  for  scenic 
purposes  between  now  and  the  last  day. 

After  six  seasons  of  continuous  exploration  I  have  seen  a  little  of 
that  range,  a  little  of  the  great  Manganese-Copper  belt  that  is  at  least 
15  miles  wide  by  35  miles  long.  More  manganese  than  I  can  find  any 
record  of  in  the  rest  of  the  known  world,  with  many  of  these  veins 
carrying  copper  in  commercial  quantity. 

Contact  fissures  between  the  igneous  and  sedimentaries  with  a 
part  of  the  iron  replaced  by  manganese  in  the  basalts  of  the  Olympic 
formation. 

It  is  the  last  west  and  the  richest  spot  on  the  frontier,  an  unex- 
plored, unprospected  area  40  miles  wide  by  60  miles  long  and  in  sight 
of  a  half  million  people. 

MR.  ROBERT  NEILL:  Now,  Mr.  President,  I  want  to  move  the 
adoption  of  this  and  that  it  be  printed. 

THE  PRESIDENT:  Is  that  motion  seconded?  The  motion  is 
not  seconded. 

MR.  BARTLETT:    I  second  the  motion. 

THE  CHAIRMAN:  It  has  been  regularly  moved  and  seconded 
that  this  become  part  of  the  record  and  have  the  endorsement  of  the 
Congress.  That  is  in  substance  the  motion. 

COL.  W.  T.  PERKINS:  I  was  going  to  say  just  a  word,  Mr. 
President,  but  I  presume  inasmuch  as  this  motion  has  been  made  and 
seconded,  I  will  speak  upon  that  question. 

I  was  somewhat  surprised  at  the  reading  of  this  paper  in  view  of 
the  fact  that  a  resolution  had  already  been  passed  by  this  Congress 
asking  for  the  changing  of  the  boundaries  of  what  is  known  as  the 
Olympic  Reserve,  and  I  supposed  that  the  gentleman  who  was  re- 
sponsible for  the  introduction  of  the  resolution  was  satisfied  with  the 
action  of  the  Congress  in  supporting  what  he  desired.  I  did  not  object 


96  OFFICIAL    PROCEEDINGS 

to  it  before  the  Resolutions  Committee,  and  I  presume  they  gave  the 
matter  the  serious  attention  which  it  deserves.  I  did  not  speak  against 
it  because  as  I  said  in  the  early  stages  of  this  convention  to  the  gen- 
tleman who  was  the  author  of  the  resolution,  that  personally  I  was  not 
acquainted  with  the  facts  in  connection  with  the  setting  aside  of  that 
national  reserve,  and  therefore  if  it  was  simply  the  matter  of  the  intro- 
duction of  a  resolution  and  the  passage  of  the  same  I  would  not  object, 
and  even  now  if  the  gentlemen  wishes  the  article  he  has  just  read  to  be 
introduced  and  placed  in  the  records,  with  his  name  attached  to  it  as  his 
monument,  I  have  no  objection,  but  I  should  feel  I  was  derelict  in  my 
duty  if  I  did  not  say  a  word  in  defense  of  the  organization  he  attempts 
to  attack. 

The  Hon.  William  E.  Humphrey's  connection  with  the  matter 
needs  no  explanation  or  apologies  from  me  because  he  has  just  been  re- 
elected  to  Congress  after  a  most  bitter  campaign  from  the  western  part 
of  this  state;  the  people  have  expressed  their  confidence;  but  as  a 
member  of  the  organization  known  as  the  Mountaineers — and  it  has 
been  severely  criticised  in  this  article — at  the  head  of  which  stands  the 
esteemed  Professor  Edmond  S.  Meany  of  the  University  of  Washing- 
ton as  its  President,  including  in  its  organization  many  other  prominent 
men  in  the  western  part  of  this  state  and  allied  with  other  great  moun- 
taineer organizations  of  the  country  whose  interests  are  for  the  coun- 
try's welfare,  I  should,  as  I  say,  be  lax  in  my  duty  if  I  did  not  just  rise 
to  say  a  word  in  defense  of  that  organization.  The  gentleman  may 
think  all  he  has  stated  is  true.  I  will  not  say  it  is  not  true  because  I 
know  nothing  of  the  facts,  but  I  do  say  that  I  believe  the  Mountaineers 
never  did  anything  in  connection  with  this  question  for  which  they 
should  be  ashamed.  I  know,  too,  many  of  the  prominent  men  who  are 
members  of  that  organization  and  who  are  disinterested  in  such  maters 
except  for  the  general  welfare  of  the  State  of  Washington  which  they 
have  dear  to  their  hearts.  When  I  arose  to  speak  I  was  intending  to 
ask  permission  that  some  member  of  the  Moutaineers,  its  President  or 
Secretary,  be  allowed  to  reply  to  this  attack,  and  print  the  same  with 
proceedings  of  this  organization,  but  on  further  reflection  I  do  not 
think  I  shall  make  that  request,  but  close  with  this  simple  statement 
in  defense  of  the  organization  and  let  the  matter  rest. 

THE  PRESIDENT:  I  wish  to  state  that  this  motion  is  trans- 
gressing the  usual  order.  The  Mining  Congress  has  not  heretofore 
sanctioned  any  motion  without  having  it  go  to  some  Committee.  It  is 
all  right  to  receive  this  and  make  it  a  part  of  the  record,  without  giving 
the  sanction  of  the  Congress  to  it,  but  when  a  motion  is  made  embody- 
ing the  endorsement  of  the  Congress,  the  usual  procedure  is  to  refer  it 
to  the  Resolutions  Committee.  I  simply  want  to  make  that  statement 
because  I  think  that  this  motion  as  made  probably  would  not  be  in 
accordance  with  the  usual  custom  of  the  organization. 

DR.  JOSEPH  S.  MERRILL:  Do  I  understand  the  Chair  rules 
the  motion  out  of  order? 

THE  PRESIDENT:  I  prefer  not  to  take  as  strong  a  stand  as 
that,  but  I  do  not  think  this  motion  is  necessary,  for  the  reason  that 
a  paper  can  be  read  and  become  a  part  of  the  record  without  receiving 
the  sanction  of  the  Congress. 

DR.  MERRILL:  I  want  to  say,  Mr.  Chairman,  that  I  am  opposed 
to  the  motion  to  put  the  endorsement  of  this  Congress  on  this  paper. 
The  statements  made  in  the  paper  may  be  all  right.  We  don't  know 
that  they  are  all  right.  Ninety  per  cent  of  the  delegates  of  this  Con- 
gress don't  know  that  they  are  all  right,  and  it  would  be  entirely  un- 
usual and  unsafe  to  endorse  any  paper  of  that  character.  Unless  the 
maker  of  the  motion  wants  to  withdraw,  I  want  to  make  another 
motion  to  lay  it  on  the  table. 

MR.  ROBERT  NEILL:  I  told  you  what  I  think.  I  am  willing 
to  substitute  that  motion  and  let  it  be  referred  to  the  Resolutions 
Committee. 


AMERICAN    MINING    CONGRESS  97 

MR.  BARTLETT:  Before  that  paper  was  read  I  understood  that 
it  could  only  become  a  part  of  the  record  and  that  is  the  way  I  intended 
the  motion. 

THE  PRESIDENT:  The  paper  as  it  is  read  without  any  motion 
becomes  a  part  of  the  record,  but  it  does  not  carry  with  it  any  sanction 
of  the  Congress. 

MR.  BARTLETT:    That  is  the  way  I  understood  it. 

THE  PRESIDENT:  That  is  what  I  wish  to  make  clear,  and  it 
seems  to  me  that  the  wise  thing  to  do  is  to  withdraw  that  motion  en- 
tirely. It  will  become  a  part  of  the  record  and  then  you  will  have  no 
further  trouble  about  it. 

MR.  BARTLETT:  With  the  consent  of  my  second  I  will  with- 
draw the  motion. 

THE  PRESIDENT:    The  motion  is  withdrawn. 

THE  SECRETARY:  Resolution  No.  15,  introduced  by  H.  N. 
Lawrie.  Recommended  by  the  Committee  for  adoption  as  amended. 

Resolution  No.  15. 

Whereas,  The  United  States  Bureau  of  Mines  under  the  able 
direction  of  its  chief,  Dr.  J.  A.  Holmes,  has  acquitted  itself  well  in 
the  work  so  far  committed  to  it,  and 

Whereas,  The  studies  of  mine  accidents  and  mine  waste  in 
the  coal  mines  have  proved  of  greatest  value  to  the  mining  industry, 
and 

Whereas,  The  problems  of  the  metal  mines  such  as  especially 
characterize  the  western  states  are  of  equal  importance,  and  in  par- 
ticular, mine  accidents  in  them  have  been  but  little  studied,  and 
lives  are  being  annually  sacrificed  for  lack  of  knowledge  of  meth- 
ods of  prevention, 

Whereas,  There  exists  through  the  West  large  bodies  of  low 
grade  ores,  and  of  tailings,  that  are  not  commercially  valuable 
because  of  the  present  lack  of  suitable  methods  of  treatment;  now, 
therefore,  be  it 

Resolved,  By  the  American  Mining  Congress,  in  Convention 
assembled,  that  the  Congress  of  the  United  States  be  commended 
for  authorizing  the  beginning  of  studies  along  these  lines,  and  be 
urged  to  increase  largely  and  promptly  the  present  inadequate 
appropriation  for  this  work. 

On  motion  duly  made  and  seconded  the  resolution  was  adopted. 
MR.    CHARLES   S.   JOHNSON:     Resolution   No.    17,   introduced 
by  H.  M.  Parks  and  Francis  A.  Thompson.     Recommended  by  the  Com- 
mittee for  adoption. 

Resolution  No.  17. 

Whereas,  This  Congress  has  previously  endorsed  the  principle 
of  Federal  Aid  to  State  Mining  Schools, 

Therefore  Be  It  Resolved,  That  the  American  Mining  Con- 
gress again  urges  immediate  passage  by  Congress  of  the  Legisla- 
ture now  pending  and  providing  for  Federal  assistance  to  the 
various  State  Mining  Schools. 

THE  CHAIRMAN:  You  have  heard  the  resolution;  what  is  your 
wish? 

MR.  ROBERT  NEILL:     I  move  its  adoption. 
Motion  seconded  and  carried. 

THE  SECRETARY:  Resolution  No.  18,  instroduced  by  Mr.  T. 
P.  McDonald.  Adoption  recommended  by  the  Committee. 

Resolution  No.  18. 

Resolved,  That  the  President  be  authorized  to  appoint  a  com- 
mittee on  Alaskan  affairs  who  shall  be  subject  to  the  direction  of 
the  Executive  Committee  and  who  shall  be  especially  instructed  as 
follows: 


98  OFFICIAL    PROCEEDINGS 

First:  To  give  the  widest  publicity  to  the  deliberations  of  the 
American  Mining  Congress  on  Alaskan  questions,  and  to  the  de- 
plorable condition  prevailing  in  Alaska  by  reason  of  the  lack  of 
ability  to  develop  Alaska's  varied  resources,  by  reason  of  the  lack 
of  transportation  facilities  and  the  tying  up  of  Alaskan  fuel  re- 
sources. 

Second:  To  urge  upon  the  Administration  and  Congress  prompt 
measures  of  relief  in  conformity  with  the  views  of  the  American 
Mining  Congress;  and  to  work  for  the  immediate  passage  of  the 
best  possible  law  that  can  be  secured  in  the  interests  of  the  United 
States  and  of  Alaska,  that  will  permit  the  immediate  development 
of  its  varied  resources  and  to  secure  the  aid  of  and  co-operate  with 
any  other  individual  bodies  or  associations  found  honestly  striving 
to  the  same  proper  end. 

Third:  That  any  law  so  passed  shall  recognize  the  rights  of 
existing  claimants  by  providing  for  the  immediate  adjudication  of 
their  rights  in  the  District  Courts,  and  be  it  further 

Resolved,  That  this  committee  is  authorized  and  directed  to 
work  to  obtain  the  construction  of  railways  for  the  development  of 
Alaska  without  further  delay.  That  they  shall  work, 

First,  To  secure  the  removal  of  existing  obstacles  and  re- 
strictions to  the  construction  of  railways  in  Alaska,  and 

Second,  Work  to  procure  the  aid  and  co-operation  of  the 
Government  for  the  construction  of  at  least  two  trunk  lines  of  rail- 
road to  connect  with  the  seaboard  the  two  great  river  systems  of 
Alaska,  with  this  emphatic  proviso,  that  if  the  Government  will  not 
aid  and  assist  such  construction  that  the  Committee  shall  urge  the 
passage  of  such  measures  as  will  bring  about  such  construction  by 
the  Government  itself. 

THE  CHAIRMAN:     You  have  heard  the  resolution;  what  is  your 
wish? 

MR.  C.  B.  CLARK,  Billings,  Mont:     I  move  its  adoption. 
Motion  seconded  and  carried. 

THE  SECRETARY:     Resolution  No.  19,  introduced  by  Mr.  Clar- 
ence Rae,  recommended  for  passage  by  the  Committee  as  amended. 

Resolution  No.  19. 

Whereas,  Complaint  is  made  by  producers  of  ore  sold  to  the 
smelters  that  the  assay  value  of  such  ores  made  by  the  smelting 
companies  does  not  accord  with  the  full  value  of  such  ores  to  the 
producers, 

Be  It  Resolved,  That  the  American  Mining  Congress  in  Con- 
vention assembled  urges  that  laws  be  enacted  by  the  various  States 
making  it  a  misdemeanor  for  any  mill,  smelter,  sampler,  or  ore 
buyer,  to  mix,  discolor,  or  in  any  way  disguise  or  destroy  the 
identity  of  a  lot  of  ore  before  its  value  has  been  definitely  agreed 
upon  between  buyer  and  seller. 

THE  CHAIRMAN:     You  have  heard  the  resolution;  what  is  your 
wish?    Is  there  a  motion  for  its  adoption? 

GOVERNOR  W.  R.  ALLEN:     I  move  its  adoption. 
Motion  seconded  and  carried. 

THE  SECRETARY:     Resolution   No.   11,  introduced  by   Col.  W. 
T.  Perkins.     Recommended  by  the  Committee  for  adoption. 

Resolution  No.  11. 

Resolved,  That  we  recommend  to  the  Congress  of  the  United 
States  the  passage  of  the  necessary  legislation  to  secure  the  same 
charges  for  the  assaying  of  gold  in  the  United  States  Assay  Office 
of  the  West  and  on  the  Pacific  Coast  as  now  prevail  at  the  United 
States  Assay  Office  in  New  York,  thus  placing  both  the  East  and 
West  on  the  same  basis. 

THE    PRESIDENT:     You    have   heard    this    resolution;    what   is 
your  wish? 


AMERICAN    MINING    CONGRESS  99 

MR.  ROBERT  NEILL:     I  move  its  adoption. 

Motion  was  seconded  and  carried. 

THE  SECRETARY:  Resolution  No.  12,  introduced  by  C.  A. 
Stewart,  of  Idaho.  The  Committee  recommends  that  the  resolution 
does  not  pass.  Shall  I  read  the  resolution? 

THE  PRESIDENT:     Yes,  read  it. 

Resolution  read   by  the  Secretary. 

THE  PRESIDENT:  What  is  your  wish  with  the  report  of  the 
Committee? 

MR.  GEORGE  MURPHY:     I  move  its  adoption. 

GOVERNOR  W.  R.  ALLEN:  As  a  member  of  the  Resolutions 
Committee,  not  hearing  anyone  else  say  anything  in  defense  or  against 
it 

THE  PRESIDENT:  Just  one  moment,  please,  Governor.  There 
was  a  motion  that  the  Committee's  report  be  adopted. 

Motion  seconded. 

GOVERNOR  ALLEN:  I  will  state  the  reason  here  why  they 
didn't  take  action  on  this.  It  was  because  it  was  interfering  or  reaching 
over  into  the  local  affairs,  and  this  American  Mining  Congress  didn't 
care  to  do  that.  That  was  the  reason  that  no  action  was  taken,  and  I 
will  state  there  was  a  mistake  made  as  to  its  appearing  here;  and  as 
a  substitute  motion  I  move  that  the  resolution  do  not  pass. 

Motion  seconded. 

THE  PRESIDENT:  Well,  the  first  motion  was  to  that  effect, 
that  the  Committee's  report  be  sustained. 

GOVERNOR  ALLEN:     Oh,  all  right. 

Motion  put  and  carried. 

THE  PRESIDENT:  I  am  going  to  ask  the  Secretary  to  make  a 
statement  of  the  position  of  the  American  Mining  Congress  in  this 
regard,  the  position  it  has  held  regarding  local  matters. 

THE  SECRETARY:  It  has  always  been  the  position  of  the 
American  Mining  Congress,  that  as  a  national  body,  it  should  not 
meddle  in  affairs  which  are  purely  the  concern  of  any  particular  State. 
This  resolution  which  has  just  been  considered  refers  only  to  the  estab- 
lishment of  a  Geological  Survey  in  the  State  of  Idaho.  That  seems 
to  be  a  matter  for  the  mining  men  of  Idaho  themselves  to  pass  upon 
and  not  for  the  national  body.  Probably  if  this  resolution  had  recom- 
mended the  creation  and  support  of  Geological  Surveys  in  each  of  the 
States,  it  would  have  met  the  approval  of  the  Committee. 

Resolution  No.  14,  introduced  by  Mr.  C.  W.  Goodale,  recommended 
for  adoption  by  the  Committee. 

Resolution  No.  14. 

Whereas,  Electric  power,  aerial  tramways  and  pipe  lines  are 
coming  to  be  of  the  utmost  importance  in  the  development  of 
mining,  and 

Whereas,    There  exists  now  no  adequate  provision  for  right  of 

way  for  such  lines,  across  the  public  domain  or  private  lands,  and 

Whereas,      This    condition    is    retarding    the    development    of 

hydro-electric   power  and  its  transmission,   and  the  growth   of   the 

mining  industry, 

Therefore,  Be  It  Resolved,  That  it  is  the  sense  of  the  Ameri- 
can Mining  Congress  that  laws  should  be  enacted  extending  the 
principle  of  eminent  domain  to  aerial  trams,  electric  lines  and  to 
pipe  lines. 

THE  CHAIRMAN:  You  have  heard  this  resolution;  what  is 
your  wish? 

MR.  BARTLETT:     I  move  its  adoption. 
Motion   seconded. 

THE  PRESIDENT:  It  has  been  regularly  moved  and  seconded 
that  the  resolution  be  adopted. 


100  OFFLCIAL    PROCEEDINGS 

THE  SECRETARY:  Mr.  President,  will  you  permit  me  to  add  a 
few  words  to  the  brief  statement  made  yesterday  afternoon  upon  this 
general  subject? 

The  original  law  providing  for  rights  of  way,  which  the  law  says 
"are  hereby  granted,"  applied  first  to  irrigation  ditches.  Later  on  a 
law  was  adopted  extending  that  to  other  public  utilities,  referring  par- 
ticularly to  pipe  lines;  but  some  ingenious  gentleman  interpolated  the 
words  "subsidiary  to  the  purposes  of  the  original  act;"  in  other  words, 
unless  a  right  of  way  is  asked  for  for  some  purpose  which  helps  to 
serve  the  purpose  of  irrigation,  the  right  of  way  is  not  to  be  granted. 
The  meaning  is  not  entirely  plain,  but  the  departments  have  seen  fit  to 
adopt  that  construction  which  brings  with  it  the  greatest  amount  of 
restriction.  This  resolution  I  believe  should  be  adopted,  but  I  doubt 
whether  it  is  as  comprehensive  as  it  ought  to  be  to  cover  the  situation. 
We  ought  to  provide  that  Government  land  is  no  more  sacred  than 
privately  owned  land.  If  I  may  condemn  a  right  of  way  across  your 
garden  for  the  building  of  a  railroad  or  any  other  public  utility,  I  cer- 
tainly ought  to  be  permitted  to  gain  by  some  process  a  right  of  way 
across  the  public  domain,  and  I  think  this  resolution  ought  to  be  more 
comprehensive. 

THE  PRESIDENT:  Would  it  not  be  well,  may  I  ask  the  Com- 
mittee, to  have  added  the  words,  "and  other  public  utilities?"  It  seems 
to  me  that  we  ought  to  make  the  resolution  a  little  more  broad,  because 
it  doesn't  quite  cover  the  ground. 

Motion   seconded  and   carried. 

MR.  C.  S.  JOHNSON:  I  now  move  that  the  resolution  be  re- 
ferred back  to  the  Resolutions  Committee  to  make  the  amendments 
to  the  resolution. 

MR.  HENRY  S.  VOLKMAR:  Why  not  just  let  the  Secretary 
make  that  substitution  and  save  time? 

MR.  JOHNSON:     If  that  will  do  all  right. 

THE  SECRETARY:  Amended  by  the  simple  addition  of  the 
words  '"'and  other  public  utilities." 

MR.  HENRY  S.  VOLKMAR:  Now  I  move  the  adoption  of  the 
resolution  as  amended. 

MR.  JOHNSON:     I  second  it. 

Motion  carried. 

THE  PRESIDENT:  I  think  this  would  be  a  very  good  place  to 
have  a  discussion  on  Ways  and  Means.  It  might  be  well  to  have  the 
ideas  of  the  Congress  if  there  are  any  here  who  have  any  special 
things  that  they  want  to  bring  before  the  Congress. 

THE  SECRETARY:  Here  is  a  resolution,  Mr.  President,  that 
has  been  presented  and  must  of  necessity  be  referred  to  the  Committee, 
although  it  has  been  covered  by  another  resolution.  Resolution  No. 
23  introduced  by  Mr.  H.  R.  Harriman. 

Resolution  No.  23,  Introduced  by  H.  R.  Harriman. 

Whereas,  Better  transportation  facilities  are  absolutely  re- 
quired for  the  development  of  Alaska,  and  especially  to  render 
available  the  great  mineral  wealth  of  that  rich  territory; 

Therefore,  Be  It  Resolved,  That  the  American  Mining 
Congress  favors  the  immediate  construction  of  two  trunk  lines  of 
railway  from  the  Pacific  Coast  of  Alaska  to  the  great  navigable 
water  system  of  the  interior,  and  that  the  Federal  Congress  should, 
by  appropriate  legislation,  encourage,  or  provide,  for  such  construc- 
tion, either  by  Government  aid,  or  by  the  Government  itself,  and 
that  the  present  onerous  burdens  and  penalties,  including  the  annual 
license  tax  of  $100  per  mile,  and  the  warehouse  tax  in  Alaska,  be 
repealed,  and  that  legislation  be  passed  favoring  and  encouraging 
further  railway  construction  in  Alaska  by  private  capital. 
THE  CHAIRMAN:  That  will  be  referred  to  the  Committee  for 
attention. 


AMERICAN    MINING    CONGRESS  -'•  ,\  tyl 

THE  SECRETARY:    I  have  a  number  of  telegrams,  the  first  from 
Mr.  John  H.  Wallace,  who  states  that  he  will  arrive  Friday  on  the  North- 
ern Limited.     He  is  expected  to  speak  tomorrow. 
The  Secretary  read  telegram  as  follows: 

St.  Louis,  Mo.,  Nov.  28,  1912. 
James  F.  Callbreath,  Jr.,  Secretary  American  Mining  Congress, 

Spokane,  Washington. 

I  believe  the  time  has  come  when  our  association  in  order  to 
efficiently  and  effectively  carry  on  its  work,  should  be  placed  upon 
a  solid  financial  condition,  and  for  that  purpose  make  the  follow- 
ing suggestion:  I  will  be  one  of  one  hundred  to  subscribe  and 
give  to  the  association  one  thousand  dollars  each  to  be  paid  during 
nineteen  hundred  and  thirteen,  contingent  upon  the  whole  one  hun- 
dred being  secured,  or  I  suggest  that  the  life  membership  be  raised 
to  one  thousand  dollars  each,  and  at  that  price  I  will  apply  for  the 
first  life  membership  at  an  additional  payment  of  nine  hundred 
dollars,  payable  during  nineteen  hundred  and  thirteen,  the  entire 
one  hundred  thousand  dollars  to  be  invested  in  safe,  high-grade 
bonds  netting  about  five  per  cent,  the  income  to  go  to  the  general 
fund  of  the  Congress. 

[Signed]  F.  WALLACE   WHITE. 

THE  PRESIDENT:  We  will  refer  this  to  the  Committee  on 
Scope  and  Finance.  I  understand  that  they  will  have  a  meeting  this 
evening  and  probably  bring  in  a  report  tomorrow. 

Mr.  Davies,  of  Kentucky,  has  a  paper  that  was  to  have  come  in 
this  afternoon's  proceedings,  and  Mr.  Davies  is  going  away.  He  asked 
to  be  relieved  of  reading  this  paper,  and  yet  it  might  be  of  interest  to 
the  Congress  to  have  it  read.  It  is  largely  statistical,  but  it  is  on  a 
very  interesting  subject,  "The  Hazards  of  All  Vocations  to  That  of  the 
Mining  Industry."  What  is  your  wish?  It  is  early  yet. 
MR.  BARTLETT:  Let  it  be  read. 

THE  PRESIDENT:  Is  Mr.  Davies  in  the  audience?  (Mr. 
Davies  did  not  respond.) 

THE  SECRETARY:  May  I  suggest,  Mr.  President,  that  we 
want  the  members  of  this  Congress  and  the  people  who  are  inter- 
ested in  mining  and  its  development  to  come  into  the  ranks  and  tell 
us  just  what  to  do.  It  is  not  safe  for  the  Secretary  to  assume  that  he 
knows  what  you  want.  He  makes  the  very  best  guess  that  he  can  in 
the  absence  of  instructions.  Usually  we  have  some  instructions,  but 
we  are  always  glad  to  know  from  the  men  who  are  on  the  ground 
just  exactly  what  they  want  done.  As  your  servant  it  is  my  duty  to 
do  the  things  that  you  want  done.  I  think  the  very  few  minutes  we 
have  can  be  profitably  spent  in  hearing  the  suggestions  of  members 
about  what  should  be  done. 

MR.  CUNNINGHAM:  I  suggest  that  the  President  give  the 
Convention  his  views  on  the  question. 

THE  PRESIDENT:  You  mean  on  the  question  of  Ways  and 
Means? 

MR.    CUNNINGHAM:     Yes,   sir. 

THE  PRESIDENT:  Well,  I  have  said  quite  a  number  of  things 
in  connection  with  this  subject  and  I  scarcely  know  what  would  be  the 
best  plan  or  what  plan  would  meet  with  the  approval  of  the  majority 
of  the  members  of  the  Congress,  but  there  is  one  thing  very  pertinent 
to  my  mind,  and  that  is  that  with  the  work  of  the  Congress  as  it  has 
been  shaping  itself  in  the  last  few  years,  it  is  going  to  change  in  scope 
very  materially  from  what  it  was  at  the  beginning  of  its  organization. 
At  the  beginning  of  the  organization  it  was  hardly  known  how  best  to 
proceed,  and  so  we  proceeded  through  the  Secretary,  largely  through 
communications  and  getting  in  touch  with  the  people  in  a  particular 
community  who  might  use  their  influence  to  accomplish  certain  things 
I  think  the  first  thing  that  really  brought  concentration  of  effort  all 


102  "OFFICIAL    PROCEEDINGS 

along  the  line  was  the  attempt  to  establish  a  Mining  Bureau,  or  first, 
rather,  the  attempt  to  secure  in  the  Government  organization  at  Wash- 
ington a  Department  of  Mining.  This  Congress  tried  for  some  time 
to  have  a  Department  of  Mining  established  in  the  organization  of  the 
Government  at  Washington,  the  same  as  the  Department  of  the  In- 
terior. This  plan  was  followed  for  quite  a  while,  and  then  it  became 
apparent  that  this  was  almost  impossible.  We  found,  those  of  us  who 
attempted  to  work  for  that  plan,  that  almost  every  Congressman  and 
Senator  was  opposed  to  the  establishing  of  any  more  departments  or 
Cabinet  positions;  not  only  that,  but  they  were  opposed  to  the  estab- 
lishment of  any  more  Bureaus,  and  when  we  came  to  talk  with  them 
about  the  matter,  there  were  some  reasons  for  it.  Their  ideas  were: 
That  every  Bureau  was  an  additional  drain  upon  the  finances  of  the 
country,  requiring  in  its  operation  a  great  deal  more  money  than  was 
at  first  expected.  We  soon  came  to  the  conclusion  that  to  secure  a 
Department  of  Mining  in  Washington  similar  to  that  of  Agriculture 
was  an  impossible  feat  to  accomplish,  without  leading  up  to  it  through 
some  other  channel.  We  found  that  by  a  special  effort,  and  the  con- 
centration of  effort,  all  along  the  line,  in  all  branches  of  mining,  we 
might  succeed  in  getting  a  Bureau  of  Mines  in  the  Department  of  the 
Interior,  and  so  that  was  the  procedure.  Now,  that  effort  demonstrated 
one  thing,  that  no  particular  district  could  by  itself  accomplish  any- 
thing along  the  line  of  securing  National  legislation,  and  the  only  way 
to  succeed  in  accomplishing  anything  in  Washington  was  to  bring  in  all 
the  mining  interests  into  one  concentrated  effort,  and  through  Mr.  Call- 
breath  as  the  head  of  the  Mining  Congress,  that  effort  was  concen- 
trated. We  succeeded  in  bringing  together  down  there  representatives 
of  the  great  States  of  the  West  in  their  precious  metal  mining.  We  suc- 
ceeded in  bringing  into  that  conference  the  clay  men  of  Ohio  and  West 
Virginia,  the  ore  men  of  Michigan  and  Pennsylvania,  the  coal  men  of 
the  coal-producing  States,  each  one,  not  all  at  one  conference,  but  at 
different  conferences,  they  came  there  together  and  through  their 
united  effort  the  Bureau  of  Mines  was  established. 

It  was  demonstrated  in  this  establishment  of  the  Bureau  of 
Mines  that  if  the  Mining  Industry  shall  ever  come  into  the  position  that 
it  should  in  the  National  Government  it  must  come  in  through  some 
such  concentrated  effort  as  was  put  forth  in  the  attempt  to  have  estab- 
lished a  Mining  Bureau.  It  demonstrated  another  fact,  that  this  work 
costs  a  great  deal  of  money. 

Nearly  every  organization  represented  by  the  different  classes  of 
mining  put  up  the  money  for  their  own  delegates  or  the  delegates  them- 
selves bore  the  expense  of  going  to  Washington  to  make  that  fight. 
Our  Secretary  got  some  money  from  probably  each  man  here.  He 
also  got  some  support  from  outside  persons  who  were  willing  to  sub- 
scribe something  towards  the  cost  of  securing  some  such  Bureau,  but 
our  position  today  has  come  to  this,  that  the  great  work  of  this  Con- 
gress is  not  going  to  be  done  in  conferences  such  as  we  have  had  this 
week.  These  conferences  are  only  for  the  purpose  of  giving  to  the  Sec- 
retary some  idea  of  what  the  mining  industry  of  this  country  wants. 
The  work  in  itself  must  be  done  down  where  you  can  reach  the  people 
who  have  the  authority  to  grant  or  establish  these  needs.  True,  he  will 
have  a  great  deal  of  work  to  do  in  each  State  during  the  time  of  the 
meeting  of  the  Legislatures  because  of  bills  that  will  originate  in  those 
States  requiring  that  each  chapter  in  the  State  may  need  some  assist- 
ance from  the  Secretary.  That  is  one  part  of  the  work  of  the  Secre- 
tary. Again  he  will  be  able  to  give  you  aid  individually,  but  the  great 
portion  of  his  work  is  going  to  be,  for  some  time  to  come,  National 
legislation.  We  are  not  a  State  institution.  We  are  a  National  institu- 
tion. Our  organization  is  National,  and  consequently  the  greatest 
efforts  that  we  have  must  be  put  forth  along  national  lines. 

That  brings  us  to  the  point  that  is  now  in  question,  that  is,  how  we 
can  best  finance  this  proposition.  The  proposition  that  came  in  from 
the  gentleman  in  this  message  is  probably  a  good  one,  a  very  good 


AMERICAN    MINING    CONGRESS  103 

one,  to  have  a  hundred  men  subscribe  a  thousand  dollars.  That  would 
produce  an  hundred  thousand  dollars.  That  will  bring  five  thousand 
a  year;  but  five  thousand  dollars  a  year  is  not  going  to  finance  this 
Congress.  It  has  got  to  be  something  a  great  deal  larger  than  that  if 
you  are  going  to  carry  on  this  work  effectively.  When  the  Secretary 
was  in  Washington  during  the  last  session  of  Congress  his  quarters 
consisted  of  two  little  rooms.  If  it  had  not  been  for  the  fact  that  he 
worked  back  in  Denver,  which  gave  the  Congress  a  larger  standing,  for 
if  the  Congressmen  or  Senators  coming  into  his  quarters  at  Washington 
would  judge  the  work  of  the  Mining  Congress  by  the  quarters  they  had 
at  Washington,  his  work  would  have  been  doomed.  And  consequently, 
if  this  Congress  is  to  come  into  its  own  it  must  have  larger  quarters. 
It  should  have  at  least  one  extra  room  in  Washington,  where  the  Sec- 
retary could  bring  any  delegation  that  came  from  any  State  or  any 
district  interested"  in  Mining  and  let  them  hold  their  meetings  there. 
Have  it  a  sort  of  reception  room,  so  that  he  might  hold  the  confer- 
ences that  are  necessary  there,  before  going  to  see  the  different  Con- 
gressmen. 

There  is  another  matter,  and  that  is,  in  order  that  the  public  be 
informed,  we  have  to  bring  to  the  people,  in  a  clear  and  concise  way 
all  facts  pertaining  to  any  question  requiring  Congressional  action. 
Consequently,  we  need  a  Bureau  of  Publicity  in  order  to  get  through 
these  proposed  laws.  It  is  not  probable  that  all  of  these  things  could 
be  consummated  at  once.  I  do  not  believe  that  we  can  bring  all  these 
things  about  at  once,  unless  there  is  some  great  change  in  the  money 
situation,  but  every  one  of  these  things  are  vital,  and  if  we  are  going 
to  do  the  great  work,  which,  I  believe,  this  Congress  has  to  do,  we  must 
finance  it  on  a  broad  basis,  giving  the  Secretary  a  fair  compensation, 
giving  him  proper  assistance,  so  that  his  time  can  be  used  to  the  best 
advantage,  not  compelling  him  to  do  the  detail  or  clerical  work,  which 
a  cheaper  man  can  do,  but  permitting  him  to  have  his  time  free  to 
exercise  in  the  way  that  will  do  the  most  good. 

There  are  several  ways  of  doing  this.  We  could  increase  the  dues 
of  the  members,  but  I  doubt  whether  that  would  very  greatly  aid  the 
Congress.  It  might  drive  from  the  Congress  membership  which  it 
otherwise  ought  to  keep,  but  I  do  think  this,  we  can  help  greatly  by 
increasing  the  membership.  I  think  every  member  here  today,  or  who 
has  attended  this  Convention,  ought  to  delegate  himself  as  a  committee 
of  one  to  see  that  the  membership  of  this  Congress  is  increased.  Addi- 
tional memberships  paying  their  dues  promptly  would  probably  bring 
enough  money  to  carry  on  this  work  properly.  This,  in  my  judgment, 
is  the  best  way  to  carry  on  the  work.  We  might  also  be  able  to  get 
some  men  who  have  made  a  great  deal  of  money  in  mining  to  agree  to 
finance  the  organization;  in  other  words,  they  might  put  up  the  money 
for  financing  it,  and  let  the  rest  of  us  who  are  not  so  fortunate  finan- 
cially do  the  work.  That  is  another  way  of  doing  it;  in  other  words, 
let  them  "grub  stake"  us.  I  don't  know  whether  that  would  work.  The 
men  who  usually  put  up  the  money  want  to  have  some  finger  in  the  pie, 
and  I  believe  that  is  right,  too.  I  am  not  clear  on  what  the  Congress 
will  consider  as  the  best  method  to  follow,  but  I  am  clear  in  one  thing, 
and  that  is  this,  that  we  must  finance  this  Congress  to  a  much  larger 
extent  than  we  have  in  the  past  if  we  are  going  to  do  the  great  work 
needing  to  be  done  by  it.  (Applause.) 

THE  SECRETARY:  Mr.  President  and  Gentlemen:  I  do  not 
like  to  take  up  the  time  of  the  Organization,  but  there  is  one  point  just 
referred  to  by  your  President  that  I  would  like  to  speak  upon,  and 
that  is  the  method  by  which  this  Organization  shall  be  supported. 

I  have  no  doubt  as  to,  the  best  method.  The  best  method  is  to 
have  the  support  of  each  individual  mining  man  throughout  the  whole 
country,  each  contributing  a  small  amount,  an  amount  which,  in  the 
aggregate,  would  support  the  work.  I  am  very  much  stronger  in  Wash- 
ington representing  five  thousand  men  who  contribute  ten  dollars  a 
year  each  than  I  would  be  representing  ten  men  who  contribute  five 


104  OFFICIAL    PROCEEDINGS 

thousand  dollars  a  year  each.  In  the  first  instance,  my  influence  in 
Washington  would  be  absolutely  ruined  if  it  was  believed  that  there 
was  back  of  me  any  great  financial  interest.  The  moment  a  suspicion 
of  that  kind  were  cast  upon  me  I  would  be  handicapped  to  such  an 
extent  that  my  influence  in  Washington  would  be  at  an  end.  As  it  is 
today,  I  don't  know  of  a  Congressman  in  Washington,  either  Senator 
or  Representative,  who  is  not  willing  to  meet  me  and  talk  with  me. 
These  men  have  no  suspicion  that  I  am  a  lobbyist  trying  to  serve  selfish 
or  personal  interests.  As  I  go  now  I  am  welcome,  because  it  is  known 
that  I  represent  the  individuals  who  are  attempting  to  build  up  a  great 
industry,  and  Congressmen  are  glad  to  know  what  it  is  you  want.  It 
is  because  of  this  that  the  work  has  succeeded  as  well  as  it  has.  There- 
fore, the  proper  way  to  finance  this  Organization  is  by  a  great  big 
membership,  each  member  contributing  a  small  amount,  with  no  man 
in  the  Organization  having  more  control  over  my  work  than  another. 
Being  directed  by  the  resolutions  of  a  large  convention,  I  know  what 
it  is  that  the  mining  men  are  asking  for.  It  is  by  that  method  alone  that 
I  can  hope  to  be  influential  in  Washington. 

I  have  hoped  that  a  resolution  would  be  adopted  by  Congress  re- 
quiring every  man  who  appears  in  Washington  to  influence  legislation  to 
be  registered,  to  show  who  it  is  that  he  represents,  and  that  unless  he 
is  registered,  it  becomes  a  misdemeanor  for  him  to  talk  to  Congress- 
men about  bills.  I  think  it  would  be  a  good  thing  to  require  such 
registration.  (Applause.)  Then  as  your  representative  it  would  be  a 
matter  of  pride  to  report  that  I  represent  five  thousand  mining  men  of 
the  West,  the  men  who  are  building  up  this  great  industry,  and  because 
of  that  I  would  have  increased  influence. 

I  want  you  to  believe  that  this  is  your  work,  that  I  am  y9ur 
servant  and  that  whatever  the  things  are  that  the  American  Mining 
Congress  wants  I  am  ready  to  do  them;  not  your  individual  idea,  but 
your  idea  as  expressed  in  resolutions  passed  at  the  Conventions.  I 
want  you  to  feel  that  it  is  your  organization,  and  you  ought  to  resolve 
yourself  into  a  committee  of  one  to  help  build  up  this  organization  so 
that  it  represents  all  of  the  mining  men  of  the  West.  I  hope  that 
through  your  efforts  we  may  enlarge  the  state  organizations  as  well 
as  the  national  organization,  so  that  not  only  the  national  work  shall 
be  looked  after  but  the  State  work.  This  is  a  day  when  contending 
forces  strive  for  the  best  and  the  strongest  force  gets  the  best  results. 
If  you  are  the  weaker  party  in  the  fight  you  get  less  than  you  are 
entitled  to  to  the  same  extent  that  the  stronger  force  gets  more  than 
it  is  entitled  to.  If  you  expect  the  mining  industry  to  receive  what  it 
is  entitled  to,  you  must  organize,  you  must  stand  together  and  you 
must  understand  that  it  is  your  fight  The  Secretary  will  lead  as  far 
as  he  is  able,  but  you  must  get  in  line,  you  must  organize,  you  must 
take  care  of  your  state  chapters  and  your  local  sections  and  see  that 
the  mining  industry  always  has  an  active  champion  ready  to  look  after 
its  interest.  I  thank  you. 

THE  PRESIDENT:  I  just  want  to  state  one  thing  more  which 
the  Secretary  has  not  stated.  The  fact  that  Congress  has  come  to  rec- 
ognize the  work  of  Secretary  Callbreath,  representing  as  he  does  the 
American  Mining  Congress  as  a  National  Institution,  brings  to  him  a 
prestige  which  he  has  not  heretofore  had,  and  there  is  scarcely  any 
legislation  now  takes  place  in  Washington  relating  to  mines  that  Sec- 
retary Callbreath  has  not  been  consulted  about.  I  just  mention  this 
to  show  you  where  the  Mining  Congress  has  reached  and  the  impor- 
tance of  supporting  its  work. 

MR.  GEORGE  MURPHY:  May  I  submit  a  short  resolution 
before  the  Committee? 

THE  PRESIDENT:    Yes,  sir. 

Resolution  No.  24,  Introduced  by  George  Murphy. 
Whereas,  Sentiment  and  necessity  for  the  improvement  of  our 
public     roads     is     becoming     universal     throughout     the     United 
States;   and 


AMERICAN    MINING    CONGRESS  105 

Whereas,  Such  improvements  have  or  can  only  be  made  by  a 
tax  levied  by  State  or  Districts  benefited,  such  tax  being  secured  by 
bond  issues  or  upon  land  improvements  contiguous  to  such  road; 
Now  the  Federal  Government  owning  and  controlling  large 
areas  of  our  public  domain,  namely,  public  lands,  forest  reserves, 
mineral  lands  and  such  lands  as  the  Federal  Government  with- 
holds from  entry,  and  upon  which  no  taxes  can  be  collected,  and 
in  order  that  connections  might  be  made  by  a  system  of  good  roads, 
thereby  facilitating  communication,  trade,  commerce  and  tourist 
travel  between  many  isolated  communities; 

Therefore,  Be  It  Resolved,  By  the  American  Mining  Con- 
gress, that  we  recommend  to  the  Legislatures  of  the  various  States 
containg  large  areas  of  such  Federal  Reservations,  that  their  rep- 
resentatives in  Congress  be  instructed  to  secure  appropriations 
necessary  to  co-operate  with  all  main  and  trunk  lines,  wagon  road, 
contemplated  and  now  being  constructed,  by  said  States,  districts 
and  counties,  and  that  Congress  be  requested  to  take  measures  to 
construct  roads  through  Federal  reserves,  now  exempt  and  not 
taxable  by  the  States,  where  such  roads  are  necessary  to  the  de- 
velopment of  the  country. 

MR.  G.  B.  DENNIS:     What  is  the  membership  now? 
THE    PRESIDENT:      In    reply    to    the    inquiry,    there    are    about 
fourteen  hundred  members  on  the  list,  but  a  very  large  majority  are  in 
arrears  with  their  dues.     As  I  said — I  don't  remember  at  what  meeting 
— the  salary  of  our  Secretary  is  back  from  1910. 

MR.  HENRY  S.  VOLKMAR:  For  information  of  a  new  person 
here,  what  is  the  order  of  procedure  for  becoming  a  member  and  what 
is  the  membership  and  annual  dues? 

THE  SECRETARY:  The  membership  fee  as  provided  by  the 
by-laws  is  fifteen  dollars.  The  annual  due  is  ten  dollars.  My  assistant, 
Mr.  Wolcott,  and  Mr.  Taylor,  Mr.  H.  S.  Taylor  were  to  constitute  them- 
selves a  committee  to  receive  applications.  Applications  will  be  re- 
ceived at  any  time  from  any  man  who  is  interested  in  the  mining  busi- 
ness and  is  willing  to  contribute  to  its  support. 

MR.  HENRY  S.  VOLKMAR:  I  am  a  new  member  here,  and  1 
am  down  here  for  the  first  time  and  I  feel  that  it  is  worth  the  money, 
and  I  have  twenty-five  dollars  here  that  can  go  to  help  pay  the  Secre- 
tary's salary.  I  have  got  it  here  for  him. 

CLARENCE  CUNNINGHAM:  I  move  that  the  Secretary  accept 
it.  (Laughter.) 

MR.  G.  B.  DENNIS:  I  took  very  kindly  to  the  proposition  that 
a  mining  temple  be  built,  and  have  proposed  Spokane  as  the  seat  for 
it.  If  you  were  housed  in  a  building  or  temple  of  your  own,  it  would 
aid  in  bringing  to  the  attention  of  mining  men  more  forcibly  the  work 
of  this  Congress.  That  temple  at  some  time  and  somewhere  must  be 
built.  In  the  meantime,  it  is  necessary  to  support  the  organization 
and  in  such  way  as  to  command  the  respect  of  its  members.  It  has 
been  suggested  that  a  De  Luxe  edition  in  the  form  of  the  history  of 
this  organization  and  its  members  should  be  published.  I  do  not  know 
what  experience  you  gentlemen  have  had  in  publications  of  this  kind, 
but  in  Spokane  and  in  this  State,  it  has  not  been  very  gratifying.  A 
history,  properly  compiled  and  truthful,  would  be  an  advantage  to  the 
Congress,  otherwise  better  unwritten  and  unpublished.  That  is  one 
form  of  raising  money  in  support  of  this  organization,  and  probably 
good,  if  as  stated,  properly  conducted.  Another  method  is  to  increase 
the  membership.  This  is  difficult  to  do  if  attempted  hurriedly.  Another 
method  is  to  establish  a  fund,  the  income  of  which  shall  support  the 
organization,  but  $100,000  is  a  mere  bagatelle;  your  fund  should  be  at 
least  $500,000.  The  Spokane  section  of  the  American  Mining  Congress, 
of  which  I  am  Chairman,  provided  the  financial  sinews  of  war,  and 
made  it  possible  for  this  convention  to  be  held  here,  and  will  further 
contribute  its  mite  toward  sustaining  the  organizations.  Our  best 
mining  men  are  members.  That  membership  could  be  greatly  increased, 


106  OFFICIAL    PROCEEDINGS 

and  the  endeavor  will  be  to  do  this.  I  pledge  myself  to  do  whatever 
can  be  done  toward  helping  out  any  plan  that  you  may  see  fit  to  adopt. 

MR.  E.  D.  SPAULDING:  Mr.  President,  is  there  any  permanent 
committee  on  finance? 

THE  SECRETARY:  We  have  had  a  committee  on  finance,  but 
it  has  never  accomplished  anything.  The  last  year  we  have  no 
such  committee. 

MR.  BARTLETT:  I  belong  to  a  company  that  has  just  become 
a  member  of  this  Association,  and  I  naturally  take  some  interest  in 
the  matter,  and  I  realize  how  hard  it  is  for  the  Secretary  to  sit  back 
in  Washington  and  see  no  money  come  in  for  his  salary.  It  looks  to 
me  like  the  National  Mining  Congress  is  in  need  of  an  organizing 
machine,  an  organizing  and  dues  collecting  machine,  where  men  will 
carry  on  the  organizing  work  in  certain  sections  and  make  collections 
of  dues  and  forward  them  to  headquarters.  It  is  very  seldom  that  a 
prompt  reply  comes  to  a  letter  or  a  request  of  that  kind  for  money, 
but  if  an  organizer  goes  after  it  he  gets  it.  It  will  come  easier  than 
by  letter.  I  just  merely  make  this  suggestion. 

THE  PRESIDENT:  I  believe  we  will  ask  that  the  rest  of  this 
discussion  be  held  over  until  the  morning  when  the  Committee  makes 
its  report.  And  before  adjourning  I  wish  to  say  that  the  Directors  will 
have  a  meeting  in  the  morning  at  9  o'clock.  There  are  some  matters 
that  should  come  before  the  Directors. 

Adjournment  was  then  taken  until  Friday  morning  at  10  o'clock. 

FRIDAY  MORNING  SESSION. 
November  29,  1912. 

President  Taylor  called  the  meeting  to  order  at  11  o'clock. 
THE  PRESIDENT:     The  first  thing  is  the  report  of  the  Resolu- 
tions   Committee.     Will   the   Chairman   of   the    Resolutions    Committee 
please  report? 

THE  SECRETARY:     I  have  his  report 
THE  PRESIDENT:     The  Secretary  has  his  report. 
THE  SECRETARY:     Resolution  No.  20,  offered  by  the  Subcom- 
mittee as  a  substitute  for  Resolutions  Nos.  8  and  13: 

Resolution  No.  20. 

Whereas,  Many  and  grave  defects  have  been  found  to  exist 
in  the  present  Federal  Mining  Laws,  and  much  hardship  results 
from  their  literal  enforcement  under  constantly  changing  interpre- 
tations, and 

Whereas,  Piece-meal  revision  is  unsatisfactory  and  results 
in  still  greater  confusion  by  changing  one  thing  without  reference 
to  others;  therefore  be  it 

Resolved,  That  it  is  the  sense  of  the  American  Mining  Con- 
gress that  a  thorough  revision  of  the  Federal  Mining  Law  is  of 
first  importance  to  the  mining  industry,  and  that  the  efforts  of  the 
Committee  of  this  Congress  on  revision  of  the  Mining  Law  to  se- 
cure a  commission  to  study  and  report  upon  the  form  of  such  re- 
vision have  the  hearty  endorsement  of  this  Congress. 

THE  PRESIDENT:  You  have  heard  the  resolution;  what  is 
your  wish? 

MR.  ROBERT  NEILL:     I  move  its  adoption. 
Motion    seconded    and    carried. 

THE  SECRETARY:  Resolution  No.  11,  introduced  by  Mr.  H.  H. 
Schwartz,  approved  by  the  Committee.  In  reading  this  resolution  I 
will  omit  the  preamble,  which  is  quite  lengthy,  reciting  different  phases 
or  conditions  under  which  this  resolution  is  justified,  and  unless  there 
is  a  desire  to  hear  the  preamble,  I  will  not  read  it.  It  had  already  been 
read  to  the  Congress. 

(Resolution  will  be  found  at  page of  this  Report.) 


AMERICAN    MINING    CONGRESS  107 

THE  PRESIDENT:  You  have  heard  the  resolution;  what  is  your 
wish? 

MR.  CHARLES  S.  JOHNSON:     I  move  its  adoption. 

THE  PRESIDENT:  It  has  been  regularly  moved  and  seconded 
that  the  resolution  as  read  be  adopted. 

Motion  seconded  and  carried. 

THE  SECRETARY:  The  Committee  reports  that  Resolution  No. 
16  has  been  withdrawn  by  request. 

Resolution  No.  23,  by  H.  R.  Harriman,  with  favorable  recommen- 
dation by  the  Committee. 

Resolution  No.  23. 

Whereas,  Better  transportation  facilities  are  absolutely  re- 
quired for  the  development  of  Alaska,  and  especially  to  render  avail- 
able the  great  mineral  wealth  of  that  rich  territory,  therefore  it  is 
Resolved,  That  the  American  Mining  Congress  favors  the 
immediate  construction  of  two  trunk  lines  of  railway  from  the 
Pacific  Coast  of  Alaska  to  the  great  navigable  water  system  of  the 
interior,  and  that  the  Federal  Congress  should  by  appropriate  legis- 
lation encourage  or  provide  for  such  construction,  either  by  Gov- 
ernment aid  or  by  the  Government  itself,  and  that  the  present  oner- 
ous burdens  and  penalties  including  the  annual  license  tax  of  $100 
per  mile  and  the  warehouse  tax  in  Alaska,  be  repealed  and  that 
legislation  be  passed  favoring  and  encouraging  further  railway  con- 
struction in  Alaska  by  private  capital. 

THE  CHAIRMAN:  You  have  heard  the  reading  of  the  resolu- 
tion; what  is  your  wish? 

MR.  HENRY  S.  VOLKMAR:     I  move  its  adoption. 
Motion  seconded  and  carried. 

THE  SECRETARY:  Resolu^n  No.  21,  introduced  by  Mr.  J.  M. 
Melang,  on  behalf  of  the  lead  and  zinc  producers.  This  resolution  has 
been  reported  favorably  by  the  Committee. 

Resolution  No.  21. 

Whereas,  The  lead  and  zinc  mining  industries  of  the  United 
States  constitute  a  great  productive  industry,  employing  many  thou- 
sands of  men,  and  this  development  in  turn  has  created  many  other 
industrial  enterprises  of  vast  importance  to  the  country  at  large,  and 

Whereas,  The  existing  tariff  duties  on  lead  and  zinc  ores 
have  been  demonstrated  to  be  less  than  the  actual  difference  be- 
tween the  cost  of  production  here  and  in  competing  countries,  and 

Whereas,  Any  reduction  of  the  present  rates  of  duty  would 
result  in  the  closing  down  of  many  mines  that  are  now  being 
profitably  operated,  thereby  depressing  industry,  destroying  values 
and  throwing  labor  out  of  employment,  and  would  also  discourage 
prospecting  and  retard  the  development  of  the  mineral  resources 
of  the  country,  and 

Whereas,  The  duties  now  levied  upon  the  imported  lead  and 
zinc  ores  are  fully  justified  as  revenue  producing  measures,  and 

Whereas,  The  lead  ores  in  the  smelting  of  refractory  gold 
ores  in  the  gold-producing  States  is  an  absolute  essential,  and  any 
burden  placed  upon  the  lead  industry  will  increase  the  cost  of  gold 
production,  and 

Whereas,  The  prevailing  high  level  of  production  costs,  in- 
cluding wages,  mining  machinery  and  mining  supplies,  is  gradually 
increasing,  while  the  value  of  the  gold  remains  stationary,  and  in 
consequence  of  which  the  production  of  gold  from  low  grade  re- 
fractory ores  is  being  greatly  hampered,  and 

Whereas,  Neighboring  countries,  where  the  cost  of  labor, 
machinery  and  supplies  is  very  much  less  than  in  the  United 
States  are  able  to  produce  lead  ores  at  so  much  less  cost  as  to  en- 
able them  to  displace  the  use  of  domestic  lead  ores  in  the  markets 
of  the  United  States,  thereby  making  impossible  the  production  of 


108  OFFICIAL    PROCEEDINGS 

those  lead  ores  essential  to  the  smelting  of  gold  ore,  which  in  turn 
will  have  the  necessary  effect  of  greatly  restricting  the  production 
of  gold  in  the  United  States.  Now,  therefore,  be  it 

Resolved,  That  the  American  Mining  Congress  believes  that 
the  best  interests  of  the  nation  demand  that  the  tariff  on  lead  be 
not  reduced,  because  any  such  reduction  would  diminish  the  pro- 
duction of  gold  which  is  the  basis  money  of  this  country. 

Resolved,  That  the  American  Mining  Congress  reaffirm  its 
prior  declarations  favoring  the  retention  of  the  present  tariff  duties 
on  lead  and  zinc  ores,  and  pledges  its  efforts  to  prevent  any  re- 
duction thereof. 

THE  PRESIDENT:     You  have  heard  the  reading  of  the  resolu- 
tion; what  is  your  wish? 

MR.  C.  S.  JOHNSON:     I  move  its  adoption. 
Motion  seconded  and  carried. 

THE   SECRETARY:     Resolution   No.   24,   introduced   by   George 
Murphy,  reported  by  Committee  with  favorable  recommendation. 

Resolution  No.  24. 

Whereas,  Sentiment  and  necessity  for  the  improvement  of 
our  public  roads  is  becoming  universal  throughout  the  United 
States,  and 

Whereas,  Such  improvements  have  or  can  be  only  made  by 
a,  tax  levied  by  State  or  Districts  benefited,  such  tax  being  secured 
by  bond  issues  or  upon  land  and  improvements  contiguous  to  such 
roads. 

Now  the  Federal  Government  owning  and  controlling  large 
areas  of  our  public  domain,  namely  public  lands,  forest  reserves, 
mineral  lands  and  such  lands  as  the  Federal  Government  with- 
holds from  entry,  and  upon  which  no  taxes  can  be  collected,  and  in 
order  that  connections  might  be  made  by  a  system  of  good  roads, 
thereby  facilitating  communication,  trade,  commerce  and  tourist 
travel  between  many  isolated  communities,  be  it 

Resolved,  By  the  American  Mining  Congress,  that  we  rec- 
ommend to  the  Legislature  of  the  various  States  containing  large 
areas  of  such  Federal  Reservations  that  their  representatives  in 
Congress  be  instructed  to  secure  appropriations  necessary  to  co- 
operate with  all  main  and  trunk  lines,  wagon  roads  contemplated 
and  now  being  constructed  by  said  districts,  States  and  Counties, 
and  that  Congress  be  requested  to  take  measures  to  construct  roads 
through  Federal  reserves,  now  exempt  and  not  taxable  by  the 
States,  where  such  roads  are  necessary  to  the  development  of 
the  country. 

THE  CHAIRMAN:     You  have  heard  the  reading  of  the  resolu- 
tion; what  is  your  wish? 

MR.  C.  S.  JOHNSON:     I  move  its  adoption. 

THE  SECRETARY:     May  its  adoption  be  with  the  instructions 

to  the  Secretary  to  correct  the  wording  in  places  where  it  is  needed? 

MR.  CLARENCE  CUNNINGHAM:     I  don't  know  whether  I  am 

in  order  or  not  on  this   question,   but  I   wonder   whether   that   comes 

within  the  province  of  the  American  Mining  Congress.    I  would  imagine 

that  we  ought  to  confine  our  resolutions  more  to  the  mining  industry. 

THE  PRESIDENT:    As  I  understand  this,  it  is  for  the  purpose  of 

helping  along  the  mining  industry. 

MR.  ROBERT  NEILL:     That  is  what  I  think.     It  is  one  of  the 
great  helps.     It  is  dealing  with  the  National   Government  affairs,   and 
that  is  in   direct  line  with  our  duties  here.     Good  roads   are  the  best 
thing  we  can  get  for  mining.     I  think  this  motion  is  eminently  correet. 
THE  PRESIDENT:   Any  further  remarks? 
Motion   carried. 

THE    SECRETARY:      Resolution    No.    22,    introduced    by   David 
Ross,  of  Illinois,  with  a  favorable  recommendation  by  the  Committee. 


AMERICAN    MINING    CONGRESS  109 

Resolution  No.  22. 

Whereas,  Since  this  Congress  two  years  ago  resolved  in 
favor  of  laws  providing  adequate  compensation  to  working  men 
injured  in  industry,  fourteen  States  have  enacted  laws  based  upon 
this  principle,  and 

Whereas,  A  committee  from  this  Congress  has  framed  a 
model  law  for  the  working  men's  compensation  for  injuries  in 
coal  mining,  be  it 

Resolved,     That   we   reaffirm   our   faith   in   the   justice   of   the 

position  that  each  industry  should  carry  its  own  burdens,  resulting 

from   accidents,   incident   to   it,   and   we   urge   the   passage   of  laws 

embodying    this    principle    broad    enough    to    cover    every    case    of 

industrial    accidents,    and    providing    adequately    for    all    killed    and 

injured  in  the  regular  line  of  their  duties,  and  for  their  dependents. 

THE    PRESIDENT:     You   have   heard   the   resolution;     what   is 

your  wish? 

MR.  C.  S.  JOHNSON:     I  move  its  adoption. 
Motion   seconded  and   carried. 

THE  SECRETARY:  Resolution  No.  25.  The  final  resolution  of 
the  Resolutions  Committee. 

Resolution  No.  25,  Prepared  by  the  Committee  on  Resolutions. 

The   Resolutions   Committee   recommend  to  the   Congress  the 
appointment  of  a  special  finance  committee  of  three   (3)   to  secure: 
First,     Funds  for  wiping  out  the  debt  of  the  Congress; 
Second,     For  meeting  the  expenses  for  the  current  year  upon 
presentation  of  a  definite  budget  from  the  Board  of  Directors. 

THE  CHAIRMAN:  This  is  really  the  report  of  the  Special 
Committee  authorized  by  the  Mining  Congress  as  a  committee  on  ways 
and  means;  what  is  your  wish? 

MR.  ROBERT  NEILL:     I  move  its  adoption,  Mr.  President. 

Motion  seconded. 

THE  PRESIDENT:  It  has  been  regularly  moved  and  seconded 
that  the  report  of  the  Committee  on  Ways  and  Means  be  adopted.  Any 
remarks? 

COL.  B.  F.  MILLARD,  Valdez,  Alaska:  You  must  realize,  and 
so  must  every  member  of  this  body,  that  this  Congress  must  be 
financed.  We  can't  expect  our  Secretary  to  furnish  all  the  money,  and 
we  know  the  work  cannot  be  carried  on  unless  there  is  money  fur- 
nished. Now,  if  that  Committee  is  appointed  and  undertakes  to  raise 
the  funds  necessary  to  pay  the  expenses  of  this  Congress,  and  its  back 
debts,  I  personally  will  guarantee  one  hundred  dollars  during  the  year 
to  that  fund  and  I  will  undertake  to  raise  five  hundred  dollars  in  the 
village  of  Valdez,  Alaska.  (Great  applause.) 

THE  PRESIDENT:  That  shows  the  right  spirit.  Any  further 
remarks? 

MR.  CLARENCE  CUNNINGHAM:  Mr.  Chairman  and  Gentle- 
men: I  don't  like  to  be  bobbing  up  so  often,  but  it  strikes  me  that  the 
purpose  of  raising  money  is  a  pretty  large  affair,  and  there  are  a  great 
many  people  in  this  State  and  adjoining  States  and  elsewhere  that  are 
interested  in  mining  that  do  not  manifest  any  great  personal  interest  in 
the  meetings  of  the  organization,  all  of  whom  perhaps  would,  if  it 
were  properly  brought  to  their  attention,  not  only  subscribe  liberally 
but  become  live  men,  and  it  appears  to  me  that  a  committee  working 
at  long  range,  perhaps,  has  not  the  same  advantage  in  collecting  funds 
or  getting  that  interest  manifested  that  a  State  Committee  could  have. 
It  strikes  me  that  each  State  having  mining  interests  should  organize  a 
Sate  Mining  Congress  with  its  President  and  Secretary  and  arrange 
meetings  and  arrange  memberships,  and  they  in  turn  report  to  the 
National  Secretary,  and  in  turn  their  dues  and  fees  in  that  way  to  a 
fund  that  would  carry  the  work  on  and  pay  all  expenses  without  this 
raising  of  money  at  long  range.  Could  we  not  in  the  State  of  Wash- 


110  OFFICIAL    PROCEEDINGS 

ington,  we  will  say,  organize  a  Mining  Bureau  or  Mining  Congress  with 
its  president,  its  secretary  and  so  forth,  whose  business  it  will  be  to 
bring  in  membership  and  create  a  fund?  The  same  thing  elsewhere — 
the  same  thing  in  Oregon  and  Idaho  and  all  the  Western  States,  par- 
ticularly all  of  which  are  built  up  practically  on  mining? 

THE  PRESIDENT:  I  might  state  that  in  the  organization  of 
the  Mining  Congress  there  is  provided  a  Vice-President  from  each  State, 
whose  principal  duty  is  just  such  work  as  Mr.  Cunningham  has  sug- 
gested, so  that  the  organization  has  already  provided  for  such  work  as 
that,  and  the  important  thing  is  to  have  each  State  Vice-president  in- 
terested. 

MR.  ROBERT  NEILL:  Now,  Mr.  President,  that  is  good  as 
far  as  it  goes,  but  I  believe  that  the  authority  to  do  these  things  ought 
to  be  given  to  the  different  localities.  I  think  it  will  aid  very  ma- 
terially in  raising  funds,  and  increasing  the  interest  in  the  American 
Mining  Congress.  It  would  increase  interest  at  home  and  we  would 
feel  that  we  were  tied  up  and  connected  with  the  mother  institution, 
and  I  believe  it  would  have  a  tendency  to  inject  more  life  and  energy 
and  interest  in  the  American  Mining  Congress. 

MR.  A.  W.  McBRIDE,  Spokane:  I  am  a  little  hoarse,  and  1 
cannot  say  much,  but  all  the  talk  seems  to  be  that  the  Committee  at 
headquarters  should  do  everything.  Now,  there  is  a  scheme  that  is 
generally  carried  out  by  societies  and  lodges  by  which  every  member 
is  given  something  to  do.  Each  member  is  asked  during  the  year  or 
season  to  get  at  least  one  member  to  join.  Now,  that  is  one  way  that 
each  member  can  do  something,  and  I  think  that  if  each  member  of 
this  American  Mining  Congress  during  the  next  year  would  try  and  get 
one  more  member  to  join,  we  would  double  our  organization,  and  also 
at  the  headquarters,  if  they  kept  getting  new  men  and  new  fees  in  all 
the  time,  I  think  they  would  feel  like  doing  more,  too.  I  think  that 
each  one  should  organize  himself  as  a  membership  committee  of  one 
to  get  one  or  more  members  during  the  next  year,  which  would  be  doing 
wonderful,  and  he  would  be  doing  something  as  well  as  having  the 
Committee  do  something. 

MR.  I.  F.  DAVIS,  of  Idaho:  It  looks  to  me  that  we  make  up  a 
set  of  instructions  for  this  Committee.  Why  not  elect  this  committee 
and  let  them  act  as  they  see  fit  and  let  these  gentlemen  make  those 
suggestions  to  the  Committee.  If  we  appoint  a  committee,  would  you 
consider  it  necessary  to  make  any  ironbound  rule  by  which  they  should 
collect  this  money? 

MR.  O'LEARY,  of  Idaho:  I  should  like  to  make  a  short  state- 
ment in  regard  to  funds.  The  mining  industry  has  been  now,  and  has 
been  for  many  years  paying  thousands  upon  thousands  of  dollars  for 
taxation  without  representation.  Therefore,  there  have  been  many 
demands  on  the  State.  There  is  demand  now  for  state  geologists,  both 
for  agriculture  and  mining  purposes,  which  is  a  very  laudable  thing, 
something  which  is  required  by  all  the  Western  States.  Now,  our 
Western  States  have  made  more  progress  in  business  and  enterprise 
in  the  last  twenty  years  than  the  Eastern  States  have  in  fifty  years,  due 
to  the  energy  and  amount  of  money  spent  in  the  mining  industry.  We 
are  paying  a  huge  tax  to  the  States.  These  States  are  now  asking  for 
state  geologists,  and  all  these  state  geologists  will  come  under  State 
salaries.  Therefore,  I  advise  that  we  elect  some  member  of  this  Asso- 
ciation as  the  head  geologist  of  each  State,  drawing  a  salary  from  the 
mining  industry,  which  the  mining  industry  pays,  and  that  he  have  a 
representative  in  Washington  in  the  National  Government,  and  as  our 
Senators  will  be  soon  elected  by  the  popular  vote  of  the  people,  we 
can  reach  our  Senators  and  our  Representatives  and  they  will  support 
measures  for  our  mining  industry.  Conservation  has  come  to  stay,  and 
conservation  must  be  made  to  help  the  mining  industry,  and  that  is  the 
only  way  to  get  it,  through  National  and  State  legislation.  We  are 
paying  taxes  enough  now. 


AMERICAN    MINING    CONGRESS  111 

MR.  H.  H.  SCHWARTZ:  I  would  like  to  have  the  motion  read 
again,  so  that  we  can  all  see  just  exactly  what  the  situation  is  before  us. 

THE  SECRETARY:  The  Resolutions  Committee  report:  "We 
recommend  to  the  Congress  the  appointment  of  a  special  Finance  Com- 
mittee of  three  to  secure,  first,  funds  for  wiping  out  the  debt  of  the 
Congress;  second,  for  meeting  the  expenses  of  the  current  year  upon 
presentation  of  a  definite  budget  from  the  Board  of  Directors." 

THE  PRESIDENT:  The  Committee  has  spent  about  two  hours 
in  this  discussion  and  most  of  the  suggestions  that  have  been  made  have 
been  considered  by  the  Committee.  The  purpose  of  this  Committee 
as  suggested  is  to  do  a  special  work,  to  stir  up  the  State  Vice-presidents 
and  all  the  interests  in  connection  with  the  raising  of  funds  and  do 
that  which  is  best  for  the  financial  affairs  of  the  Congress. 

MR.  H.  H.  SCHWARTZ:  It  seems  to  me  that  the  subject  is  too 
large  to  arrive  at  a  complete  understanding  here  this  morning,  and  I 
think  the  real  thing  to  do  is  to  adopt  the  resolution  and  let  the  Com- 
mittee formulate  and  work  out  the  plans. 

THE  PRESIDENT:  That  is  the  idea.  The  question  before  the 
house  is  on  the  adoption  of  the  resolution.  Any  further  remarks? 

Motion  carried. 

THE  PRESIDENT:  It  has  been  called  to  the  attention  of  the 
Chair  that  there  was  a  motion  made  yesterday  asking  that  Mr.  Silcox 
be  given  an  opportunity  to  explain  the  position  of  the  Forestry  Service 
in  view  of  the  charges  that  were  made  against  it.  On  account  of  the 
recess  that  was  taken  the  motion  was  not  brought  up  again,  and  the 
desire  was  expressed  by  several  last  night  that  Mr.  Silcox  be  granted 
the  floor  this  morning. 

MR.  ROBERT  NEILL:  I  would  like  to  ask  that  that  motion  be 
renewed  and  that  Mr.  Silcox  have  the  privilege  of  the  floor.  We 
would  like  to  hear  from  him.  We  might  not  be  interested  much,  but  we 
would  like  to  know  the  facts,  and  we  would  get  them. 

Motion  carried. 

THE  CHAIRMAN:     Is  Mr.  Silcox  in  the  room? 

(No  response.) 

THE  SECRETARY:  I  might  say  that  I  was  with  Mr.  Silcox 
just  before  he  left  town  last  night.  He  gave  me  no  intimation  that  he 
felt  affronted  in  any  way  or  that  he  thought  there  was  any  refusal  to 
hear  him.  I  understand  that  one  of  the  papers — 

MR.   ROBERT  NEILL:     Don't  criticize  the  press. 

THE  SECRETARY:  Not  at  all— made  the  statement  that  Mr. 
Silcox  had  been  refused  permission  to  reply,  but  I  am  sure  Mr.  Silcox 
did  not  feel  aggrieved  in  any  way. 

MR.  GEORGE  H.  DERN:  I  was  in  the  chair  at  the  time  and  I 
think  it  is  up  to  me  to  make  an  explanation  of  this  matter.  There  was 
no  disposition  on  the  part  of  the  Chair  to  head  off  the  motion  to  give 
Mr.  Silcox  an  opportunity  to  speak,  and  I  don't  think  there  was  any 
disposition  on  the  part  of  the  gentleman  who  made  the  motion  calling 
for  a  further  report  from  the  Resolutions  Committee  to  do  anything  of 
that  kind.  I  heard  the  motion  which  was  made  to  give  Mr.  Silcox  an 
opportunity  to  speak,  but  the  motion  was  not  seconded,  and  just  about 
the  same  time  a  gentleman  sitting  over  there  on  that  side  made  a 
motion  to  receive  a  further  report  from  the  Committee  on  Resolutions. 
That  motion  was  seconded  and  adopted,  and  immediately  after  that  a 
recess  was  taken  to  permit  the  delegates  to  meet  the  representatives  of 
the  railroads  in  the  back  part  of  the  room.  That  took  up  some  time,  and 
when  the  session  was  renewed  there  were  very  few  members  left,  the 
discussion  was  not  renewed,  and  that  is  the  way  it  happened  that  there 
was  no  special  invitation  extended  to  Mr.  Silcox. 

I  had  some  conversation  with  Mr.  Silcox  myself.  I  suppose,  not 
being  a  delegate  to  this  Congress,  perhaps  it  was  proper  to  make  a 
motion  to  give  him  the  opportunity  to  speak,  but  I  don't  think  that  he 
had  any  particular  desire  to.  He  said  nothing  of  that  kind  when  I 
talked  to  him,  In  fact,  he  expressed  himself  as  very  much  pleased 


112  OFFICIAL    PROCEEDINGS 

with  the  discussion,  the  criticisms  that  had  been  made,  and  specific 
instances  that  had  been  cited,  so  that  instead  of  general  accusations  and 
blind  charges  there  were  specific  instances  cited  which  could  be  in- 
vestigated, and  he  also  intimated  that  a  good  many  of  these  things 
could  have  been  obviated  at  the  time  if  the  proper  parties  had  been 
consulted. 

THE  SECRETARY:  Mr.  President,  may  I  add  one  word.  Mr. 
Silcox  expressed  to  me  his  great  desire  to  be  able  to  get  in  touch  with 
the  mining  people  in  some  way,  so  that  these  specific  complaints  could 
be  made  so  that  he  could  remedy  them  if  it  was  within  his  power.  He 
was  anxious  that  we  should  arrange  through  our  organizations  that  the 
complaints  could  be  made  specifically  through  our  representatives  to 
him.  He  expressed  anxiety  to  remedy  every  complaint  that,  it  is  pos- 
sible to  remedy. 

THE  PRESIDENT:  I  might  say  that  I  had  a  talk  personally 
with  Mr.  Silcox,  and  the  substance  of  the  remarks  of  the  last  two 
speakers  were  made  by  Mr.  Silcox  to  me,  and  I  feel  sure  that  he  did  not 
feel  any  affront  at  the  expressions  which  were  made. 

GOVERNOR  W.  R.  ALLEN:  I  come  from  the  State  from  which 
Mr.  Silcox  hails.  I  want  to  say  in  behalf  of  Mr.  Silcox  that  conditions 
in  that  State  have  been  improved  wonderfully  since  Mr.  Silcox  became 
District  Forester,  and  if  all  the  States  had  such  Foresters  as  Mr.  Silcox 
this  great  and  burning  question  would  probably  not  be  so  much  dis- 
cussed here.  Conditions  have  been  wonderfully  improved.  We  feel 
that  it  is  due  immediately  to  Mr.  Silcox,  and  I  think  that  it  is  due  him 
at  this  time  that  I  make  this  statement,  he  not  being  here. 

THE  SECRETARY:  Mr.  President:  The  discussion  which  was 
scheduled  for  this  morning  upon  the  subject  of  workman's  compensa- 
tion is  so  important  and  it  will  be  discussed  in  so  interesting  a  manner, 
that  it  will  be  hardly  fair  for  the  speakers  to  begin  only  a  few  minutes 
before  12  to  discuss  that  question.  I  would  suggest  that  we  finish  up 
other  matters  this  morning,  and  that  we  devote  this  afternoon  to  the 
discussion  of  this  subject. 

THE  PRESIDENT:  And  begin  at  1:30,  so  that  those  who  have 
to  leave  the  city  can  make  the  trains.  The  Secretary  has  some  com- 
munications here  from  various  persons  that  we  ought  to  hear  at  this 
time. 

THE  SECRETARY:  First  a  supplementary  report  from  the  Com- 
mittee on  Standardization  of  Electrical  Equipment  in  Coal  Mines.  You 
will  recall  that  the  report  of  this  Committee  was  adopted  by  the  Con- 
gress some  years  ago.  Since  then  it  has  been  adopted  by  the  Penn- 
sylvania Legislature,  and  now  constitutes  the  law  of  that  State.  It  is 
the  purpose  of  this  report  to  suggest  further  action  along  these  lines.  It 
is  largely  technical  in  its  nature.  I  don't  know  that  it  will  be  of  par- 
ticular interest  to  you  gentlemen  for  me  to  read  it,  but  it  is  not 
very  long. 

MR.  ROBERT  NEILL:    Read  it. 

THE  SECRETARY:  It  is  in  the  form  of  a  communication.  It 
should  be  incorporated  in  the  way  of  a  report.  It  is  addressed  to 
President  Taylor. 

Standardization   of   Electrical   Equipment. 

Philadelphia,  November  25,   1912. 
S.  A.  Taylor,  Esq.,  President,  American  Mining  Congress, 

Spokane,   Wash. 

Dear  Sir:  I  am  sorry  not  to  have  had  an  opportunity  of 
talking  with  you  before  you  went  West  regarding  the  work  of  the 
above  Committee,  but  since  locating  in  Philadelphia  I  am  very 
seldom  in  Pittsburgh.  As  you  know,  there  has  been  no  meeting  of 
this  Committee  recently,  and  the  situation  has  been  that  we  are 
waiting  to  see  how  our  recommendations,  which  were  adopted  by 
the  State  of  Pennsylvania  in  their  new  mining  law,  will  work  out. 
There  are  a  number  of  points  in  the  Pennsylvania  law  which  have 


AMERICAN    MINING    CONGRESS  113 

aroused  considerable  objection  both  from  the  operators'  and  in- 
spectors' standpoint.  Mr.  Roderick,  Chief  of  the  Department  of 
Mines,  advised  me  a  few  days  ago  that  he  was  about  to  recommend 
a  Commission  to  draft  a  similar  code  for  the  anthracite  districts. 
I  recommended  Mr.  Warren  of  our  Committee  as  Chairman  of  this 
new  Commission,  and  think  it  probable  that  Mr.  Roderick  will 
recommend  him  to  Governor  Tener. 

There  has  been  considerable  progress  made  in  the  development 
of  apparatus,  such  as  gasproof  switches,  motors,  etc.,  required  by 
our  recommendations,  and  a  large  number  of  machines  and  switches 
of  this  type  have  been  installed  during  the  past  year. 

I  would  suggest  as  a  subject  for  discussion,  if  opportunity 
offers,  whether  the  Congress  should  go  on  record  as  advising  against 
the  use  of  a  potential  higher  than  300  volts  for  underground  min- 
ing apparatus,  such  as  locomotives  and  machines.  I  know  there  will 
be  considerable  objection  to  this  on  the  part  of  many  operators, 
and  possibly  of  some  of  our  Committee,  but  I  think  the  time  is 
rapidly  approaching  when  high-tension  alternating  current  will  be 
available  in  almost  all  of  the  mining  districts,  either  from  plants 
owned  by  the  companies  or  from  public  service  companies,  and 
this  will  make  it  easily  possible  to  install  substations  at  such  loca- 
tions as  will  permit  the  use  of  300  volts  D.  C.  without  excessive 
drop  in  lines. 

The  company  with  which  I  am  connected  has  lately  agreed 
to  purchase  power  for  a  new  development  in  West  Virginia,  as  we 
find  it  will  be  more  economical  than  generating  our  own  power. 
The  accounting  systems  at  coal  mines  have  heretofore  taken  very 
little  account  of  the  overhead  charges  in  estimating  power  costs, 
but  if  due  allowance  is  made  for  interest  and  depreciation,  amount- 
ing I  think  to  not  less  than  fifteen  per  cent  on  the  total  investment, 
it  will  be  found  that  there  are  very  few  plants,  except  some  of  the 
larger  central  stations,  which  can  deliver  power  at  less  than  Ij^c 
per  K.W.  hour,  and  a  lower  rate  than  this  is  easily  obtainable  from 
almost  any  power  company  east  of  the  Mississippi  River. 

I  am  sorry  not  to  be  able  to  come  to  the  meeting  this  year, 
especially  as  I  was  appointed  by  Governor  Tener  as  a  State  Dele- 
gate, but  I  was  unable  to  get  away. 

You  may  be  interested  to  know  that  the  American  Institute 
of  Electrical  Engineers  is  to  appoint  a  Committee  on  the  "Use  of 
Electricity  in  Mines,"  and  I  have  been  asked  by  President  Mershon 
to  act  as  Chairman  of  this  Committee.  I  think  it  probable  that 
there  will  also  be  at  least  one  other  member  of  our  Committee  in 
the  Congress  on  this  Committee  of  Electrical  Engineers,  and  we 
will,  of  course,  endeavor  to  work  in  harmony  with  the  American 
Mining  Congress  and  other  State  organizations. 

With  best  wishes,  I  remain, 

Yours  very  truly, 

GEO.  R.  WOOD,  Chairman. 

THE  PRESIDENT:  Unless  there  are  some  objections,  this  letter 
will  be  changed  slightly  and  made  a  report  of  that  Committee. 

THE  SECRETARY:  We  have  now  the  report  of  the  Committee 
on  Standardization  of  Electrical  Equipment  in  precious  metal  mines. 
It  is  a  technical  report.  It  is  one  that  even  though  it  is  read  cannot  give 
to  the  hearer  a  comprehensive  idea  of  it,  and  one  which,  I  think,  should 
be  carefully  considered.  I  would  suggest  to  the  Chair,  and  to  the  Con- 
vention, that  if  it  meets  with  approval,  it  would  probably  be  better  to 
have  it  published  in  our  Monthly  Bulletin  with  an  invitation  to  our 
members  and  others  for  comments,  suggestions  and  criticisms,  and 
after  a  full  discussion  it  may  be  changed,  if  necessary,  to  conform  to 
the  ideas  of  the  members  before  it  is  finally  approved  by  the  Congress. 
This  report  presence  vital  questions,  affecting  safety  on  the  one  hand 


114  OFFICIAL    PROCEEDINGS 

and  increased  cost  on  the  other,  the  two  being  dove-tailed  together.  It 
is  a  question  that  requires  a  great  deal  of  consideration. 

MR.  H.  H.  SCHWARTZ:  I  move  that  it  be  received  and  pub- 
lished in  the  Mining  Congress  Bulletin  for  the  consideration  of  the 
members  so  as  to  secure  their  suggestions. 

Motion  seconded  and  carried. 

Report   of   Committee   on   Standardization   of   Electrical   Equipment  in 

Metal  Mines. 

To  the  American  Mining  Congress: 

Your  committee  appointed  to  draft  rules  governing  the  installation  and 
operation  of  electrical  equipment  in  metal  mines,  respectfully  submits  their 
report  herewith: 

Submitting  this  it  has  been  the  intention  of  your  committee  to  compile 
a  set  of  rules  which  would  be  sufficiently  broad  to  work  no  hardships  on 
anybody  and  to  be  sufficiently  exacting  to  bring  about  installations  that  would 
not  only  be  safer  but  more  economical  and  efficient  than  has  been  the  general 
practice  in  metal  mines. 

In  compiling  this  report  your  committee  is  indebted  to  Dr.  Rosea  for  his 
valuable  work  along  similar  lines. 

Your  committee  also  submitted  copies  of  its  preliminary  rules  to  the  fol- 
lowing gentlemen,  and  received  their  criticisms  in  reply:  Mr.  D.  C.  Jackling, 
Mr.  W.  H.  Staver,  Mr.  W.  J.  Canada,  Mr.  P.  C.  Schools  and  Mr.  G.  B.  Rosen- 
blatt. For  many  valuable  suggestions,  the  committee  is  indebted  to  these 
gentlemen. 

All    of   the   above    is    respectfully    submitted. 

H.    S.    SANDS, 
CHARLES    A.    CHASE, 
PRANK    E.    SHEPARD, 

Committee. 

These  rules  are  to  govern  the  installation  and  operation  of  all  electrical 
equipment  used  in  metal  mines. 

DEFINITIONS. 

The    expression    "pressure"    means    the    difference    of    electrical    potential 
between  any  two  electrical  conductors. 
Low   Pressure. 

(a)  Where   the  conditions  of   the   system  are   such   that   the   pressure 
between    any    two    conductors,    or    between    any   conductor   and    the    earth, 
at   the   terminals  where   the   electricity  is   being  used   cannot   exceed   three 
hundred   (300)   volts,   this  shall  be  deemed  a  low  pressure  system. 

Medium   Pressure. 

(b)  Where  the   conditions   of   the   system  are   such   that  the  pressure 
between   any    two    conductors,    or   between    any    conductor    and    the    earth, 
at    the    terminals    where    the    electricity    is    being  .used,    can    exceed    three 
hundred   (300)   volts,   but  cannot  exceed  six  hundred   (600)   volts,   this  shall 
be  deemed  a  medium  pressure  system. 

High   Pressure. 

(c)  Where  the   conditions  of   the   system   are   such   that   the  pressure 
between   any    two    conductors,    or   between   any   conductor    and    the    earth, 
at    the    terminals    where    the    electricity    is    being    used,    can    exceed    six 
hundred   (600)   volts,   this  shall  be  deemed  a  high  pressure  system. 

SECTION    1. 
Distribution    System. 
Switching  Station. — Rule  1— 

Where    the    generating    station    or    substation    is    more    than    500    feet 
from    the    entrance    to    the    tunnel    or   shaft,    a    switching   station    shall   be 
installed  at  the  entrance  to  the  tunnel  or  shaft  for  cutting  off  the  power 
from  each  circuit. 
Hoist.— Rule  2— 

The    circuit   feeding   electric   hoists    used    for   raising   or   lowering   men 
shall  be  separate  from  all  other  circuits  and  shall  run  from  the  distribution 
center,   and   no  other  electrical   apparatus  shall  be  connected   thereto. 
Lightning   Arresters. — Rule  3 — 

Where  the  circuits  entering  the  shaft  house  or  tunnel  are  from  an 
overhead  transmission  system  each  circuit  shall  be  protected  by  lightning 
arresters,  which  shall  be  grounded  to  efficient  grounds  prepared  for  that 
purpose. 

Grounding. — Rule   4 — 

All  alternating  current  systems  in  which  the  normal  working  pressure 
does  not  exceed  the  limits  of  medium  pressure,  and  all  three-wire  direct 
current  systems  shall  be  grounded.  In  alternating  current  power  systems 
where  the  voltage  does  not  exceed  medium  pressure  and  where  the  sec- 


AMERICAN  MINING  CONGRESS  115 

ondaries  of  the  transformers  are  connected  in  star,  then  the  neutral  or 
center  of  the  star  shall  be  grounded. 

Where  the  distribution  system  is  delta  or  open  delta,  then  the  central 
point  of  one  transformer  shall  be  grounded. 

Where  the  distribution  is  three-wire  direct  current,  then  the  neutral 
shall  be  grounded. 

The  wiring-  for  signal  or  telephone  circuits  shall  be  located  on  the 
opposite  side  of  the  manway,  shaft,  or  tunnel,  from  the  power  or  light 
wiring. 

Underwriters. — Rule   5 — 

All  wiring  shall  conform  to  the  rules  of  the  National  Board  of 
Underwriters. 

Shaft   Wiring.— Rule   6— 

All  power  wires  whose  pressure  does  not  exceed  medium  pressure 
shall  be  run  where  possible  in  the  manway  or  the  compartment  of  the 
shaft  where  hoisting  does  not  occur,  and  shall  be  either  lead  armored 
cable,  or  run  in  water  proofed  or  drained  conduit. 

If  the  lead  armored  cable  is  used  the  insulation  must  be  non-hydro- 
scopic  and  as  acid  proof  as  possible.  The  cable  shall  be  held  in  place 
by  frequent  fastenings  spaced  according  to  the  weight  of  the  cable  so 
that  the  cable  is  firmly  and  securely  held  in  place  and  there  is  no  danger 
of  the  cable  "dragging."  The  lead  covering  of  the  cable  must  be  grounded. 
If  the  wires  are  run  in  conduit,  junction  boxes  shall  be  placed  at  every 
level,  and  in  no  case  shall  the  interval  between  boxes  exceed  one  hundred 
and  fifty  feet.  These  junction  boxes  shall  be  held  in  place  and  provision 
made  to  hold  the  weight  of  the  wire  in  the  conduit  leading  to  the  junction 
box  below  on  insulated  supports.  The  iron  conduit  must  be  grounded. 

Power    Wires. — Rule    7 — 

All  power  wires  whose  pressure  exceeds  that  of  medium  pressure 
shall  be  of  either  lead  armored  cable  or  encased  in  iron  or  steel  conduit 
or  other  approved  non-hydroscopic  conduit;  in  any  case  metal  covering 
shall  be  well  grounded  with  wire  at  least  one-half  the  size  of  the  largest 
wire  In  the  cable  or  conduit. 

Joints. — Rule  8 — 

All  joints  must  be  electrically  efficient,  mechanically  strong,  and 
soldered  unless  approved  solderless  joints  are  used.  All  joints  except  In 
trolley  wires,  should  be  taped,  or  otherwise  suitably  insulated  to  protect 
them  from  corrosion. 

Bushings. — Rule   9 — 

Where  unarmored   cables  or  wires  pass  through   metal  frames  or  into 
boxes   or   motor   casings,   the   holes  shall  be  substantially  bushed   with  in- 
sulating  collars. 
Sectionalizing. — Rule  10 — 

Wherever  branch  electric  circuits  leave  a  main  or  secondary  feeder, 
cut-outs  and  switches  shall  be  provided  for  disconnecting  the  branch 
line  from  the  supply  line,  and  all  main  and  distributing  feeders  shall  be 
provided  with  sectionalizing  switches  at  distances  not  exceeding  one  mile. 
All  cut-outs  above  ground  to  be  in  approved  metal  cabinets  and  under 
ground  in  subway  type  cabinets. 

Switches,   Circuit   Breakers,   Fuses. — Rule  11 — 

All   switches,    circuit   breakers   and   fuses   must   have   bases   of  marble, 
slate,    or   porcelain,    or   other    suitable    incombustible    non-hydroscopic    ma- 
terial,  free  from  metallic  veins,  and  shall  be  placed  in  as  dry  a  situation 
as   practicable. 
Circuit    Breakers,    Fuses. — Rule   12 — 

Fuses  and  automatic  circuit  breakers  should  be  so  constructed  or 
adjusted  as  to  open  the  circuit  when  the  current  through  them  exceeds 
not  more  than  100  per  cent  the  working  current  in  the  case  of  motors, 
or  by  not  more  than  30  per  cent  the  permissible  current  of  the  cables 
which  they  protect.  Puses  shall  be  stamped  or  marked,  or  shall  have  a 
label  attached  indicating  the  current  at  which  they  are  intended  to  fuse. 
Fuses  shall  be  adjusted  or  replaced  only  by  a  competent  person,  author- 
ized by  the  mine  superintendent. 
Grounds. — Rule  13 — 

The  rails  of  the  haulage  system  and  the  air  and  water  pipes  shall  be 
connected  together  wherever  practicable  so  that  the  efficiency  of  the 
"ground"  may  be  bettered,  and  where  the  formation  is  such  that  good 
electrical  grounds  cannot  be  obtained,  then  the  tracks,  and  air  and  water 
pipes,  shall  be  connected  to  a  good  and  well  prepared  ground  at  the  mouth 
of  the  tunnel  or  collar  of  the  shaft  as  the  case  may  be. 

SECTION    2. 

Apparatus. 
Sizes   and   Capacity. — Rule   14 — 

All  electrical  apparatus  shall  be  sufficient  in  size  and  capacity  for 
the  work  they  may  be  called  upon  to  do,  and  so  installed,  operated, 


116  OFFICIAL    PROCEEDINGS 

maintained,    and    safeguarded    as    to    reduce    the    danger    from    accidental 
shock  or  fire  or  overheating  to   the  minimum,   and  shall  be  of  such  con- 
struction and  so  operated  that  the  rise  in  temperature  caused  by  ordinary 
working   will   not   injure   the   insulating   materials. 
Grounding. — Rule  15 — 

All  electrical  apparatus,  that  is,  motors,  transformers,  generators, 
and  their  switching  devices  installed  underground,  shall  have  their  frames 
well  grounded. 

Portable   Motors.— Rule  16— 

A  higher  pressure  than  medium  pressure  shall  not  be  used  for  portable 
motors. 

Transformers. — Rule    17 — 

Where  pressure  higher  than  medium  pressure  is  used  in  connection 
with  transformers  installed  underground  they  shall  be  installed  in  a  dry, 
well  ventilated,  fireproof  room  or  compartment  or  station  so  arranged 
that  it  can  be  entirely  closed  with  fireproof  doors  should  any  accident 
occur,  and  the  fire  arising  from  the  accident  be  smothered. 

High    Pressure    Motors.— Rule   18 — 

No  motors  of  less  than  15  horsepower  shall  be  used  on  circuits  of 
higher  than  medium  pressure. 

Switches  and   Fuses. — Rule  19 — 

All  motors,  together  with  their  starting  resistance  or  induction  starter, 
as  the  case  may  be,  shall  be  protected  by  fuses  and  switches,  or  by 
automatic  circuit  breakers,  capable  of  entirely  cutting  off  the  current  and 
must  be  in  sight  of  the  motor. 

Trailing   Cable.— Rule  20— 

In  the  event  of  the  trailing  or  portable  cable  in  service  breaking  down 
or  being  damaged,  or  of  its  inflicting  a  shock  upon  any  person,  it  shall 
at  once  be  put  out  of  service  and  shall  not  be  used  again  until  it  has 
been  repaired  and  tested  by  the  mine  electrician  or  assistant  mine 
electrician.  . ./  *  _  } 

SECTION    3. 

Employment    of    Mine    Electricians. — Rule   21 — 

At  every  mine  where  electricity  is  used  below  ground,  a  competent 
mine  electrician  and,  where  necessary,  an  assistant  mine  electrician,  also, 
shall  be  employed,  subject  to  the  authority  of  the  mine  superintendent. 
The  electrician  shall  have  full  charge  of  all  electrical  apparatus  used  in 
connection  with  the  mine. 

Every    person    appointed    to    operate    any    electrical   apparatus    in    con- 
nection  with   a  mine   shall  be   instructed   in   his   duty  by  the   mine   super- 
intendent or  electrician  before  taking  charge  of  the  apparatus. 
Inspection  of  Wiring. — Rule  22 — 

It  shall  be  the  duty  of  the  mine  electrician  to  inspect  all  wiring  and 
apparatus  once  every  ten  days,  and  once  each  month  to  make  report 
of  such  inspections  in  writing  to  the  superintendent,  stating  all  defects 
found  and  how  repaired  or  remedied. 

SECTION    4. 

Protection. 
Fire   Buckets.— Rule  23— 

Fire  buckets  filled  with  clean,  dry  sand  shall  be  kept  where  stationary 
electrical  apparatus  is  located,  ready  for  immediate  use,  and  regularly 
inspected  once  every  month.  The  provision  of  tetra  chloride  fire  extin- 
guishers is  recommended. 

Resuscitation. — Rule   24 — 

Instructions  shall  be  placed  at  the  mine  entrance,  and  in  every  gen- 
erating, transforming,  and  motor  house,  for  the  resuscitation  of  persons 
suffering  from  electric  shock.  All  employes  operating  the  electrical  appa- 
ratus shall  be  required  to  acquaint  themselves  with  these  instructions. 

Recording   Accidents. — Rule  25 — 

Every  personal  accident  occurring  in  connection  with  the  operation 
of  the  electrical  equipment  shall  be  promptly  reported  by  the  person 
Injured,  or  by  some  other  person  on  his  behalf,  to  the  mine  superin- 
tendent, and  shall  be  recorded  by  him  at  the  office  of  the  mine. 

Plans.— Rule  26— 

A  plan  on  a  scale  not  smaller  than  200  feet  to  the  inch  shall  be  kept 
at  the  mine,  showing  the  position  of  all  permanent  electrical  machinery 
and  fixed  cables  or  conductors  in  the  mine,  and  shall  be  corrected  as 
often  as  may  be  necessary  to  keep  it  as  nearly  as  practicable  up  to  date, 
and  never  more  than  six  months  In  arrears. 


AMERICAN  MINING  CONGRESS  117 

SECTION    5. 

Haulage. 
Location   of  Wires   In    Roadway. — Rule  27 — 

In  underground  roads,  the  trolley  wires  shall  be  placed  as  close  to 
the  side,  and  as  straight  as  practicable,  and  securely  supported  at  frequent 
intervals.  In  all  roads  where  it  is  necessary  for  men  to  travel  on  foot, 
all  wires,  except  signal  wires,  must  be  placed  on  the  same  side  of  the 
roadway.  The  trolley  wire  shall  not  be  less  than  six  feet  from  the  top 
of  the  rail  unless  protected  from  casual  contact  of  passersby  by  suitable 
shield  or  trough. 
Protection  of  Cables. — Rule  28 — 

Where  the  cables  in  main  haulage  roads,  where  persons  are  hauled 
into  or  out  of  the  mines,  cannot  be  kept  at  least  eighteen  inches  from 
any  part  of  the  car,  they  shall  be  specially  protected. 

Cables  and  wires,  unless  provided  with  metallic  coverings,  shall  not 
be  fixed  to  walls  or  timbers  by  means  of  non-insulating  fastenings. 

Where  main  or  other  roads  are  being  repaired,  or  where  blasting  is 
being:  done,  temporary  protection  must  be  used  so  that  the  cables  are 
protected  from  damage. 

SECTION    6. 

Lighting  and  Signal  Wires. 
Erection  of  Lighting   and  Signal   Wires.— Rule  29 — 

Small  wires  for  lighting  or  signal  circuits  shall  either  be  conveyed 
in  pipes  or  casings,  or  they  may  be  suspended  from  porcelain  or  glass 
Insulators  or  securely  tied  to  them,  so  that  they  do  not  touch  any  timber- 
ing, rock,  or  metal.  On  no  account  shall  staples  be  used.  If  metallic 
pipes  are  used,  they  must  be  grounded  and  well  drained.  If  separate 
unencased  wires  are  used,  they  shall  be  kept  at  least  three  (3)  inches 
apart,  and  not  brought  together  except  at  lamps  or  fittings. 

SECTION    7. 
Shot  Firing.— Rule  30 — 

Electricity  from  light  and  power  circuits  shall  not  be  used  for  firing1 
shots  in  a  mine  except  where  the  electrical  connection  to  such  light  or 
power  circuit  is  made  within  an  inclosed  switch  room,  which  shall  be 
kept  securely  locked  and  shall  be  accessible  only  to  the  authorized  shot 
flrer.  If  electricity  from  light  or  power  cables  is  used  for  firing  shots 
in  a  mine,  no  shots  shall  be  fired  until  all  the  men  are  out  of  danger. 

Special  precautions  must  be  taken  to  prevent  accidental  contact  be- 
tween shot-firing  cables  or  wires  and  power  and  lighting  cables. 

Only    persons    authorized    in    writing   by    the    mine    foreman    or   super- 
intendent are  permitted  to  fire  shots  electrically  in  a  mine. 
Battery  or   Magneto   Exploders. — Rule  31 — 

Where  battery  or  magneto  exploders  are  used,  they  shall  be  inclosed 
in  a  suitably  constructed  box,  fitted  with  a  removable  connecting  plug 
or  key  without  which  the  circuit  cannot  be  closed.  This  plug  or  key 
shall  be  detached  when  not  required  for  firing,  and  shall  not  under  any 
conditions  pass  from  the  personal  custody  of  the  shot  flrer  while  on  duty. 
Exploders  shall  be  frequently  tested  by  the  shot  firer  to  insure  that  they 
give  the  necessary  pressure  and  current. 

The  exploder  shall  not  be  connected  to  the  shot-firing  cable  until  all 
other  steps  preparatory  to  the  firing  of  the  shot  have  been  completed 
and  all  persons  have  removed  to  a  place  of  safety. 

Immediately  after  the  firing  of  the  shot  the  firing  cable  shall  be 
disconnected  from  the  exploder,  and  no  person  shall  approach  a  shot  that 
has  been  attempted  to  be  fired  by  electricity  and  has  failed  to  explode 
until  the  firing  cable  has  been  disconnected  and  an  interval  of  five  minutes 
ha«  elapsed  since  the  last  attempt  to  fire  the  shot. 

SECTION    8. 
Telephones. 
Telephone   Systems,   When    Required,    How    Installed.— Rule  32— 

All  mines  from  which  exit  is  by  shaft  only,  and  all  others  in  which 
the  working  places  extend  more  than  one  mile  from  a  place  of  exit,  shall 
be  provided  with  an  underground  telephone  system,  provided  the  number 
of  underground  employes  at  any  one  time  on  the  regular  working  force 
exceeds  twenty-five.  The  system  shall  be  of  approved  construction,  and 
of  such  extent  that  no  working  place  shall  be  at  a  greater  distance  than 
three-fourths  mile  from  a  telephone,  and  principal  shaft  stations  shall  be 
provided  with  telephones. 

All  main  telephone  cables  shall  be  insulated  with  waterproof  insula- 
tion, and  unless  run  through  metal  pipes  or  casings,  or  approved  conduit, 
they  shall  be  protected  by  a  continuous  lead  sheath. 


118  OFFICIAL    PROCEEDINGS 

THE  SECRETARY:  I  have  a  letter  from  Dr.  J.  A.  Holmes,  Di- 
rector of  the  Bureau  of  Mines,  in  response  to  a  request  for  a  state- 
ment of  the  work  of  the  Bureau.  In  this  connection  I  would  like  to 
say  that  Dr.  Holmes  fully  intended  to  be  here.  It  was  necessary  in  the 
conduct  of  the  Bureau  for  him  to  go  to  Panama,  but  he  intended  re- 
turning in  time  to  take  a  train  direct  from  New  York  to  Spokane.  Since 
the  Convention  opened  we  received  a  telegram  from  him,  stating  that 
a  belated  steamer  had  made  it  impossible  for  him  to  get  to  the  Conven- 
tion. 

Washington,  Nov.  23,   1912. 
Mr.  S.  A.  Taylor, 

President  American  Mining  Congress, 

Spokane,  Wash. 
My  Dear  Sir: 

In  response  to  your  request  for  a  statement  to  be  read  at  the 
Congress  concerning  the  work  and  plans  of  the  Bureau  of  Mines  with 
special  reference  to  mining  in  the  western  states,  I  regret  exceedingly 
that  circumstances  beyond  my  control  have  prevented  my  attending 
the  Spokane  session  of  the  Mining  Congress  to  present  such  a  state- 
ment in  person. 

The  Bureau  of  Mines  fully  recognizes  its  indebtedness  to  the 
American  Mining  Congress  not  only  as  the  most  influential  agency  in 
behalf  of  its  establishment,  but  also  for  the  encouragement  and  assist- 
ance which  the  employees  of  the  Bureau  have  been  constantly  re- 
ceiving from  the  officers  and  members  of  the  Mining  Congress. 

In  thus  acknowledging  this  indebtedness,  I  desire  to  emphasize  the 
fact  that  the  Bureau  of  Mines  does  not  belong  to  its  Director,  nor  to 
the  Department  of  the  Interior.  It  belongs  to  the  mining  industry  and 
the  mining  men  of  this  country,  and  it  looks  to  them  for  advice  and 
guidance. 

In  this  spirit  and  to  an  extent  never  before  practiced  by  any  other 
branch  of  the  Government  service,  the  Bureau  of  Mines  from  its 
establishment  to  the  present  time  has  in  all  its  plans  and  policies  sought 
and  acted  upon  the  best  advice  of  the  mining  engineers,  the  mine  own- 
ers, and  the  mine  workers  of  the  country.  Such  will  be  its  policy  and 
its  practice  as  long  as  its  present  management  continues. 

The  purpose  of  the  Bureau  of  Mines  is  not  to  concern  itself 
especially  with  matters  pertaining  to  either  Federal  or  State  legisla- 
tion, nor  to  compete  with  the  private  mining  engineer  or  chemist  in 
doing  those  things  which  might  better  be  left  to  private  enterprise. 
Its  purpose  is  to  conduct  such  inquiries  and  scientific  investigations 
and  to  publish  such  reports  as  will  best  promote  the  health  and  safety 
of  miners,  lessen  the  unnecessary  waste  of  important  mineral  re- 
sources, and  advance  the  general  welfare  of  the  mining  industry. 

As  to  the  work  of  the  Bureau  in  behalf  of  western  mining  in- 
dustries, I  endeavored  to  explain  to  the  members  of  the  American 
Mining  Congress  both  at  its  Los  Angeles  session  in  1910  and  its 
Chicago  session  in  1911  that  during  these  two  first  years,  under  exist- 
ing legislation,  the  Bureau  largely  and  necessarily  devoted  its  energies 
to  the  investigation  of  the  coal  and  other  fuel  industries  of  the  middle 
and  other  eastern  states.  During  that  time,  however,  the  Bureau  has 
maintained  and  operated  in  the  Rocky  Mountain  and  other  western  re- 
gions three  mine  safety  cars,  and  it  has  carried  on  a  limited  investiga- 
tion in  connection  with  the  smelter  industry  within  those  regions. 

During  the  current  year  the  Bureau  is  expending,  mainly  in  Colo- 
rado, Utah,  California  and  Montana,  its  first  distinctive  appropriation" 
of  $50,000  in  behalf  of  the  western  mining  conditions,  which  appropria- 
tion was  made  under  the  following  language: 

"For  inquiries  and  investigations  into  the  mining  and  treatment  of 
ores  and  other  mineral  substances,  with  special  reference  to  safety 
and  waste,  $50,000:  Provided,  That  no  part  thereof  may  be  used  for 
investigation  in  behalf  of  any  private  party,  nor  shall  any  part  thereof 


AMERICAN  MINING  CONGRESS  119 

/ 

be  used   for  work   authorized   or   required  by  law   to   be  done  by  any 
other  branch  of  the  public  service." 

The  Bureau  is  also  expending  during  the  current  year  an  appro- 
priation of  $75,000  in  testing  the  workability  and  availability  for  naval 
purposes  of  certain  of  the  coal  beds  in  the  Bering  River  and  Matanuska 
coal  fields  of  Alaska. 

The  Department  has  recommended  that  the  appropriation  for  these 
western  metal  mining  and  mineral  investigations  during  the  next  year 
be  increased  from  $50,000  to  $250,000.  It  is  hoped  that  Congress  may 
see  its  way  clear  to  grant  this  increase,  and  from  time  to  time  to 
make  such  additional  appropriations  for  these  inquiries  and  investiga- 
tions as  will  enable  the  National  Government,  through  this  Bureau,  to 
discharge  its  full  duty  and  to  meet  its  full  indebtedness  to  the  mining 
industry  of  our  great  empire  lying  between  the  Mississippi  River 
and  the  Pacific  and  in  Alaska. 

The  Bureau  of  Mines  has  co-operated  in  the  past,  and  will  co- 
operate in  the  future  with  the  American  Mining  Congress  and  with 
the  mining  journals  of  the  country  in  getting  the  American  people  to 
realize  the  progress  and  the  magnitude  of  our  mining  industry  and 
what  this  industry  means  in  relation  to  the  growth  and  the  perma- 
nent welfare  of  this  nation.  I  am  encouraged  to  believe  that  the  people 
of  this  country  are  not  only  awakening  to  the  importance  of  mining  as 
one  of  its  two  great  foundation  industries,  but  that  they  are  also 
awakening  to  the  importance  of  this  industry  and  the  responsibility  of 
the  General  Government  in  relation  to  the  welfare  of  the  public  land 
states  and  the  welfare  of  Alaska. 

Yours  very  truly, 

J.  A.  HOLMES,  Director. 

THE  PRESIDENT:  With  no  objection,  the  Secretary  will  take 
care  of  this  in  the  usual  order  in  connection  with  the  proceedings. 
Special  attention  is  again  called  to  the  discussion  of  workmen's  compen- 
sation this  afternoon.  I  wish  you  would  all  take  note  and  be  here 
promptly  at  1:30. 

THE  SECRETARY:  We  have  a  paper  by  E.  T.  Bent  of  Chicago 
upon  the  subject  of  workmen's  compensation,  a  paper  by  Mr.  Storms, 
State  Mineralogist  of  California,  and  a  paper  by  George  W.  Riter  of 
Salt  Lake  City,  Mineral  Land  Laws  and  The  Decadence  of  Prospecting. 
I  would  like  instructions  to  insert  these  in  the  record  without  their 
presentation. 

THE  PRESIDENT:  If  there  is  no  objection  the  communications 
will  be  inserted  in  the  record  as  requested. 

Mr.  Bent's  paper  will  be  found  at  page  of  this  report. 

Mr.  Storms's  paper  will  be  found  at  page  of  this  report. 

Mr.  Riter's  paper  will  be  found  at  page  of  this  report. 

THE  SECRETARY:  Here  is  a  resolution  offered  by  the  Special 
Committee  of  the  Resolutions  Committee  of  the  American  Mining 
Congress. 

Resolution  No.  27,  Introduced  by  the  Committee  on   Resolutions, 

Whereas,  The  Fifteenth  Annual  Session  of  the  American 
:  Mining  Congress  held  at  Spokane,  November  25  to  29,  1912,  and 
including  visits  to  the  representative  cities  of  the  great  Coeur 
d'Alene  Mining  District,  has  been  one  of  the  most  interesting,  profit- 
able and  enjoyable  sessions  ever  held  by  the  Congress,  and 

Whereas,  The  success  and  pleasure  of  the  meeting  have  re- 
sulted from  the  excellent  arrangements  made  for  the  sessions  and 
from  the  charming  hospitality  extended  to  the  members  of  the 
Congress  by  the  citizens  of  Spokane  and  the  Inland  Empire;  now, 
therefore,  be  it 

Resolved,  That  this  Congress  hereby  expresses  its  deep  ap- 
preciation of  the  help  and  entertainment  thus  extended  to  it,  and 


120  OFFICIAL    PROCEEDINGS 

its  hearty  thanks  to  all  concerned;  including  especially  the  Spokane 
Section  of  the  Congress  and  the  local  committees  at  Spokane  and 
in  the  Coeur  d'Alenes,  the  Chamber  of  Commerce,  the  Ad  Club, 
the  Realty  Board,  the  Clubs  and  Theaters,  the  Press,  and  the 
Citizens  generally,  and  its  members  will  all  carry  home  most  de- 
lightful memories  of  "Sunny  Old  Spokane." 

THE  CHAIRMAN:  You  have  heard  this  resolution;  what  is  your 
desire? 

MR.  ROBERT  NEILL:     I  move  its  adoption. 

Motion  seconded. 

THE  PRESIDENT:  It  has  been  regularly  moved  and  seconded 
that  the  resolution  as  read  be  adopted;  any  remarks? 

GOVERNOR  ALLEN:  And  in  seconding  this  resolution  I  want 
to  say  that  Montana,  the  Montana  delegation  is  very  appreciative  of 
this  splendid,  cordial  and  royal  reception  that  we  have  received,  and 
in  return  I  wish  to  extend  the  invitation  to  every  delegate  attending 
this  Congress  to  visit  Montana,  the  mining  center  of  the  world.  We 
will  take  the  hinges  off  the  front  gate  and  we  will  open  wide  the  door, 
and  extend  all  the  latch  strings  if  you  will  only  come  and  see  us.  We 
invite  you.  (Applause.) 

MR.  H.  F.  SAMUELS:  In  behalf  of  Idaho  and  the  Coeur 
d'Alenes,  we  ask  all  the  members  to  visit  us,  to  come  on  the  special 
trains  tomorrow,  and  see  what  the  Coeur  d'Alenes  are,  one  and  all  of 
you  are  cordially  invited,  and  we  all  extend  the  hospitality  that  our 
friends  from  Montana  have  extended  to  you. 

MR.  H.  B.  BROWN,  (Mining  Director  of  the  Vancouver  Exhibi- 
tion, Vancouver,  B.  C):  The  gentleman  here  from  the  eastern  coun- 
try have  seen  what  Spokane  can  do  for  them,  and  now  on  behalf  of  the 
people  of  British  Columbia,  I  ask  them  to  call  and  see  us  on  their  way 
back.  At  any  time  that  they  come  in  they  will  find  the  latch  string 
out.  The  British  Columbia  people  are  ready  to  welcome  them,  and 
in  Vancouver  especially  they  will  find  a  city  that  is  working  hand  and 
glove  with  Spokane.  When  it  comes  to  the  development  of  the  western 
country  they  find  that  we  are  right  in  line  with  Spokane. 

COLONEL  B.  F.  MILLARD:  Mr.  Chairman,  on  behalf  of  the 
Alaskans,  or  at  least  a  portion  of  them,  I  wish  to  thank  the  people  of 
Spokane  and  say  to  them  they  are  welcome  to  our  country,  one  of  the 
most  beautiful  summer  trips  in  the  world.  We  have  no  latch  strings 
on  our  doors  and  we  have  no  hinges  .on  our  gates,  but  we  have  the 
greatest  mining  country  on  earth,  and  we  invite  you  to  come  and 
see  us.  (Applause.) 

THE  PRESIDENT:    Any  further  remarks? 

MR.  G.  DENNIS:  On  behalf  of  Spokane  I  want  to  thank  you  for 
these  kindly  words.  I  want  to  say  to  you  that  if  in  this  instance,  sir, 
we  have  illustrated  to  you  that  the  gates  of  Spokane  and  of  the  Inland 
Empire  are  always  open  to  mining  manhood,  then  that  alone  is  sufficient 
without  a  vote  of  thanks  for  what  we  have  done.  We  have  simply  ap- 
preciated, Mr.  Chairman,  that  the  American  Mining  Congress  is  a  great 
institution  of  intellect  and  of  manhood;  that  it  is  in  the  field  to  do  the 
greatest  good  to  the  greatest  number  of  people;  that  it  is  proceeding 
upon  the  right  lines  of  endeavor,  and  having  recognized  that  fact  we 
could  not  do  else  than  receive  you  with  open  arms  upon  this  occasion. 
And,  gentlemen,  if  in  your  wisdom  you  should  determine  to  make  this 
the  permanent  seat  of  the  Congress,  and  I  reiterate  it,  and  build  a 
temple  here  we  will  upon  every  instance  receive  you,  individually  and 
collectively,  in  just  exactly  the  same  spirit  that  we  have  received  you 
here  on  this  occasion.  I  thank  you,  gentlemen  (applause). 

THE  PRESIDENT:     Are  you  ready  for  the  question? 

Motion  carried. 

THE  PRESIDENT:  I  am  sure,  on  behalf  of  the  American  Mining 
Congress  that  in  this  resolution  the  maker  in  his  statements  embodied 


AMERICAN  MINING  CONGRESS  121 

the  principle  at  least  of  the  feeling  of  every  member  here.     We  have 
another    resolution. 

THE  SECRETARY:  May  I,  Mr.  President,  before  reading  this 
nnal  resolution  make  a  special  request  that  each  individual  person  will 
constitute  himself  a  committee  of  one  to  bring  someone  here  this 
afternoon,  to  bring  as  many  here  this  afternoon  as  possible  to  hear 
the  discussion  of  the  workmen's  compensation  subject.  It  will  be  of 
great  interest  to  everybody. 

Resolution  No.  26,  Offered  by  the  Committee  on  Resolutions. 

Resolved,  That  while  the  depletion  of  the  ranks  of  member- 
ship of  this  Congress  by  death  is  a  constantly  recurring  source  of 
sorrow,  we  desire  to  express  our  especial  sense  of  the  loss  sustained 
this  year  through  the  death  of  numerous  members  and  particularly 
the  passing  over  the  divide  of  Dr.  E.  R.  Buckley,  past  president, 
and  Col.  E.  G.  Brownlee,  active  director,  whose  long  and  self- 
sacriricing  work  for  the  success  of  this  organization  and  the  good 
of  the  Mining  Industry  will  be  productive  of  results  years  after 
the  names  of  the  men  themselves  have  become  but  suggestive  of 
pleasant  memories. 
On  motion  duly  made  and  seconded  the  resolution  was  declared 

adopted;  whereupon  an  adjournment  was  taken  until  2  p.  m.  the  same 

day. 

FRIDAY,  NOVEMBER  29,  1912. 
Afternoon  Session. 

President  Taylor  called  the  meeting  to  order  at  2  p.  m. 

THE  PRESIDENT:  We  have  with  us  this  afternoon  Mr.  John 
H.  Wallace,  a  member  of  the  Washington  Industrial  Insurance  Com- 
mission, who  will  now  address  us  on  the  subject  of  Workmen's  Com- 
pensation. 

MR.  JOHN  H.  WALLACE:  Mr.  Chairman,  Delegates  to  the 
American  Mining  Congress:  I  desire  to  make  a  few  preliminary  re- 
marks before  I  take  up  with  you  the  subject  of  Workmen's  Com- 
pensation as  worked  out  in  our  state.  I  understand  from  the  press  re- 
ports that  you  have  been  dealing  with  conservation,  the  national 
conservation,  as  taken  up  by  our  United  States  Government.  It  is  a 
very  great  question,  one  in  which  you  as  mining  men  are  deeply  inter- 
ested, and  probably  were  I  one  of  you,  as  an  employer  of  labor  or  a 
man  that  operated  mines,  I  should  be  agitated  by  the  conservation 
policy  adopted  by  our  National  Government;  but  there  is  another  form 
of  conservation  that  appeals  to  me  even  more  strongly  than  does  your 
conservation  of  the  mineral  wealth  of  our  great  country;  that  is,  the 
conservation  of  humanity  (applause).  I  say  that  in  discussing  a  com- 
pensation law  you  cannot  intelligently  discuss  it  without  you  discuss 
with  it  the  protection  of  life  and  limb;  that  the  mere  dollars  and  cents 
or  the  human  symbols  of  value  that  you  pay  out  to  the  mothers  and 
the  children  of  dependent  workmen  that  lose  their  lives  in  an  honest 
effort  to  gain  a  living,  is  not  adequate  compensation,  no  matter  how 
much  it  is,  for  the  loss  of  these  lives,  unless  you  have  first  done 
everything  in  your  power  to  place  a  safe-guard  around  them  that  would 
prevent  such  a  loss. 

I  want  to  make  plain  my  position  on  this  Board  so  that  you  will 
not  misunderstand  me.  Our  Board  is  composed  of  three  members,  im- 
partial, I  believe,  as  men  representing  different  organizations  or  dif- 
ferent parts  of  this  great  movement  can  be.  One  represents  the  em- 
ployers of  labor.  He  is  the  Chairman  of  the  Commission,  Mr.  C.  A. 
Pratt  of  Tacoma.  The  other  member  of  the  Board  is  an  Attorney, 
Hamilton  Egday  of  Seattle  who  deals  with  the  moot  legal  questions 
that  come  before  the  Board.  I  am  here  representing  the  laboring  men 


122  OFFICIAL    PROCEEDINGS 

of  the  state  on  that  Board.  So,  if  you  glean  from  my  reports  some 
things  which  to  you  seem  radical,  remember  that  I  have  the  courage 
of  my  convictions  and  I  am  only  stating  what  I  believe  to  be  right 
and  honest  in  the  carrying  out  of  a  work  of  this  character.  I  am  not 
going  to  deal  with  the  law  in  its  entirety  in  my  paper  this  afternoon. 
That  would  be  top  long  and  too  tedious  a  job,  but  I  shall  be  glad  to 
answer  any  questions,  after  the  reading  of  this  paper,  that  you  may 
desire  to  ask  in  order  that  you  may  be  enlightened  as  to  the  workings 
of  our  Board  in  this  state. 

Mr.  Wallace's  paper  will  be  found  on  page  of  this  report. 

THE  PRESIDENT:  If  there  are  any  questions  desired  to  be 
asked,  we  will  have  them  now. 

MR.  HENRY  VOLKMAR:  Mr.  Chairman,  I  would  like  to  ask 
of  Mr.  Wallace,  please,  whether  if  a  workman  may  have  an  accident 
insurance  or  some  other  fraternal  lodge  insurance  that  he  would  draw 
in  a  case  of  accident,  whether  that  would  cut  him  off  of  his  allowance 
under  the  compensation  law? 

MR.  JOHN  H.  WALLACE:  This  law  does  not  contemplate  any 
reduction  in  reward  because  the  man  carries  his  own  protection. 

THE  PRESIDENT:  Are  there  any  other  questions?  If  not,  we 
will  next  have 'an  address  by  Mr.  David  Ross,  Commissioner  of  Labor 
of  the  State  of  Illinois  on  the  subject  of  Workmen's  Compensation. 

Mr.  Ross's  address  will  be  found  at  page  of  this  report. 

THE  PRESIDENT:  If  any  person  has  any  questions  to  ask  Mr. 
Ross,  we  hope  he  will  do  so  now.  If  there  are  no  questions  to  be 
asked,  I  am  going  to  ask  President-Elect  Brunton  to  come  to  the  chair 
for  awhile,  not  only  to  introduce  him  to  you,  but  I  wish  to  make  a  few 
remarks  myself  on  this  subject.  (Applause.) 

MR.  BRUNTON:  Mr.  President,  Ladies  and  Members  of  the 
Congress: 

Permit  me  first  to  thank  you  most  heartily  for  the  great  honor 
you  have  just  conferred  upon  me  by  electing  me  to  the  presidency  of 
your  organization. 

Year  by  year,  the  American  Mining  Congress  has  increased 
steadily  in  numbers,  importance  and  value  to  the  industry  which  it 
represents  and  I  think  we  must  all  congratulate  ourselves  that  this  is 
the  most  delightful,  and  at  the  same  time,  the  most  successful  meeting 
we  have  ever  held. 

At  times,  we  may  have  been  somewhat  long  on  oratory,  but  none 
of  our  speakers  have  ever  been  short  either  of  valuable  ideas  and  sug- 
gestions, or  good  sound  business  sense.  The  enthusiasm  of  our  mem- 
bers and  the  results  of  our  deliberations,  will,  I  hope,  make  the  labors 
of  this  body  felt  not  only  throughout  the  mining  regions  of  the  west, 
but  in  the  east  and  most  of  all  in  Washington,  where  matters  of  vital 
importance  to  the  mining  industry  will  soon  be  considered  by  a  Demo- 
cratic Congress. 

Personally,  I  do  not  share  in  the  dire  forbodings  of  many  of  our 
members  who  already  see  the  tariff  on  lead  and  zinc  removed,  our 
mines  shut  down  and  workmen  idle. 

Our  President-elect  is  a  cautious,  careful  student,  both  of  the 
science  of  government  and  of  business  affairs,  and  will,  I  am  sure,  ex- 
ercise due  care  and  deliberation  in  bringing  about  tariff  changes.  No 
one,  not  even  a  Congressman,  can  forget  for  a  moment  that  our  work- 
men need  protection  and  that  the  Government  must  have  sources  of 
revenue,  which  means  that  the  lead  and  zinc  interests  can  not  be  wholly 
deprived  of  protection. 

For  the  past  few  years,  we  have  been  sailing  over  summer  seas 
and  as  a  consequence,  many  of  our  old  members  have  been  somewhat 
remiss  in  sending  in  their  annual  dues,  which  accounts  for  the  depleted 
condition  of  our  treasury.  Now,  however,  with  requests  for  assistance 


AMERICAN  MINING  CONGRESS  123 

pouring  in  from  all  quarters,  it  is  easy  to  see  that  our  organization  has 
fully  demonstrated  its  capacity  to  benefit  the  industries  it  represents, 
and  that  henceforth,  it  will  command  both  the  moral  and  financial 
.support  necessary  to  give  it  an  unlimited  field  of  usefulness. 

At  the  conclusion  of  this  most  successful  meeting,  we  tender  our 
heartiest  thanks  to  the  local  organizations  and  the  citizens  of  Spokane, 
both  for  their  invaluable  assistance  and  the  lavish  hospitality  which 
together  have  combined  to  make  this  meeting  so  wonderfully  pleasant 
and  profitable. 

Gentlemen,  I  ask  the  assistance  and  co-operation  of  every  one  of 
you,  during  the  coming  year  that  I  may  be  able  to  follow  worthily  in 
the  footsteps  of  my  hardworking  and  illustrious  predecessors. 

THE  PRESIDENT:  I  just  want  to  say  a  few  words  in  connection 
with  the  subject  under  discussion  this  afternoon. 

Mr.  Taylor's  address  will  be  found  at  page  of  this  report. 

THE  PRESIDENT:  Gentlemen  of  the  Congress:  There  is  a 
gentleman  in  the  room,  who  came  across  the  mountains  with  the  Forty- 
niners  to  California  and  has  labored  up  and  down  the  camps,  and  he  is 
here  today.  He  has  asked  the  privilege  of  a  few  minutes  to  address 
you  this  afternoon  (applause).  We  will  now  hear  from  the  Rev.  W.  J. 
White. 

REV.  WHITE:  Mr.  President  and  Gentlemen:  As  you  have  just 
been  informed,  I  came  to  California  in  1849  and  I  have  been  on  the 
Pacific  Coast  ever  since.  Fifty  of  those  years  that  have  passed  away 
I  have  been  preaching  the  gospel  and  doing  what  I  could  along  the 
lines  of  mission  work.  I  spent  a  good  many  of  those  years  in  the 
mining  camps  from  Arizona  to  northern  Idaho.  I  want  to  say  in 
behalf  of  the  Mission  Boards  of  the  churches  of  the  Pacific  Coast  that 
they  have  done  their  very  best  to  reach  the  hearts  and  the  minds  of 
the  men  in  the  mining  communities  on  the  Pacific  Coast,  and  it  is  no 
common  mind  nor  heart.  •  That  mind  and  that  heart  as  a  representation 
of  manhood  and  womanhood  represents  as  grand  a  consistency  of 
brawn  and  brain  as  can  be  found  in  this  nation.  We  have  not  failed  in 
succeeding  as  we  would  have  done  and  as  we  hoped  to  have  done  be- 
cause the  mind  and  heart  of  these  men  in  the  mining  camps  are  not 
susceptible  of  reaching  everything  that  God's  word  teaches.  The  Mis- 
sionary could  not  grasp  their  intelligence,  but  we  failed  because  of 
this  one  common  hindrance  that  is  peculiar  to  the  camps  out  here  in 
the  recent  day  and  that  is  the  desecration  of  the  Sabbath.  That  has 
been  a  permanent  thing  against  God  and  against  humanity  since  gold 
was  discovered  in  California.  When  the  Comstock  lode  was  opened  up 
in  1864  Sabbath  desecration  took  deep  root  downward  and  brought  a 
fearful  harvest  of  fruit  upward.  There  were  men  that  came  there  from 
almost  every  mining  country  in  the  world,  good  men,  men  that  repre- 
sented a  high  class  of  wage  earners,  but  they  said,  we  don't  want 
to  bring  our  families  here,  our  wives  and  our  children,  where  this  idea 
of  Sabbath  desecration  runs  and  controls  the  interests  of  life.  The 
men  who  have  control  of  those  interests  said  that  they  had  no  use  for 
any  of  the  men  who  had  any  use  for  the  Sabbath  or  who  would  not 
work  on  the  Sabbath;  a  man  that  has  been  brought  up  to  believe  in 
the  holiness  of  the  Sabbath  and  will  not  work  on  the  Sabbath  is  a 
hindrance  to  the  mining  work  in  this  country.  When  you  have  that  sort 
of  an  influence  and  control  to  contend  with  it  is  difficult  to  reach  the 
hearts  and  the  minds  of  the  men.  We  have  tried  to  reach  the  minds  of 
the  mine  owners  and  they  have  tried  to  console  themselves  with  the 
idea,  this  idea  regarding  Sabbath  desecration,  they  would  say,  "If  we 
leave  those  men  loose  on  the  Sabbath  they  will  go  on  a  big  drunk  and 
we  can't  get  them  back  again  for  half  a  week."  When  they  put  up 
that  sort  of  an  argument,  we  would  ask  the  question,  "Are  miners  born 
drunkards?"  Let  me  repeat  the  question  and  emphasize  it,  "Are  miners 
born  drunkards?"  Is  there  any  man  acquainted  as  I  was  with  mining 
interests  that  will  say  that  miners  are  born  drunkards?  Why  cannot 


124  OFFICIAL    PROCEEDINGS 

they  leave  these  men  have  God's  day  for  themselves  and  for  the  wor- 
ship of  God?  If  they  leave  them  free  on  Sunday,  will  they  get  drunk 
and  not  go  back  to  work  for  half  a  week?  No.  Mr.  President,  the 
only  thing  that  has  brought  them  down  to  this  condition  has  been  the 
fact  that  the  owners  and  operators  of  the  mines  would  not  let  them 
off  on  Sunday  so  that  they  could  worship  God  and  strengthen  their 
characters.  You  take  any  class  of  men  and  leave  them  in  places  isolated 
from  the  rest  of  the  world,  leave  them  deprived  of  the  institutions  of 
the  Sabbath  and  Almighty  God  and  you  will  find  a  set  of  men  subject 
to  all  of  the  vices,  drinking,  drunkenness  and  licentiousness,  and  those 
men  have  become  a  class  of  men  that  it  is  not  safe  to  let  loose  on 
the  Sabbath  because  they  can't  get  them  back  to  work  before  half  a 
week  has  gone  by.  After  half  a  century  a  miner  feels  his  empty  purse 
and  his  spent  life,  and  feels  that  there  is  something  wrong  somewhere 
and  he  attributes  it  all  to  this  man  who  had  the  oversight  of  those 
men.  He  thinks  it  is  because  they  pay  them  less  wages  than  they 
ought  to  have  received  and  that  the  conditions  were  not  right,  but  I 
want  to  say,  Mr.  President,  that  that  is  not  the  reason.  In  my  ob- 
servation, if  I  went  up  on  the  witness  stand  I  would  have  to  say  that 
the  mine  owners  in  these  regions  from  one  end  of  the  country  to 
the  other  have  dealt  squarely  and  fairly  in  the  matter  of  wages  and  in 
the  prompt  payment  of  those  wages  to  their  employees,  but  the  wrong 
has  been  in  this,  that  the  mine  owners  have  deprived  their  employees 
of  the  use  of  the  Sabbath,  and  in  that  way  caused  those  men  to  have 
weak  constitutions  and  empty  purses.  Poverty  begets  discontent;  dis- 
content begets  anarchy,  and  anarchy  brings  people  not  to  believe  in 
government  or  the  administration  of  government,  places  the  power  on 
the  strong  rather  than  on  the  weak  and  brings  contention  between 
labor  and  capital  that  goes  on  and  on  unnecessarily,  all  because  men 
have  been  deprived  of  these  means  of  grace  and  have  been  brought  to 
this  depth  of  degradation.  It  is  not  the  industrious  miner,  the  man  that 
is  doing  the  best  he  can  to  lay  up  enough  money  to  build  a  home, 
that  class  of  miners  are  not  the  discontented  ones,  they  are  not  the 
ones  that  are  bringing  on  the  strikes.  No,  it  is  the  class  of  men  that 
have  nothing  and  have  been  brought  to  this  depth  of  degradation  and 
because  their  moral  sensibility  has  been  uncultivated,  as  it  might  have 
been  if  they  had  had  the  use  of  the  Sabbath. 

I  must  not  take  up  all  your  time,  but  I  just  want  to  impress  this 
upon  the  minds  and  the  hearts  of  those  who  are  present  today,  and  I 
want  to  say  that  there  is  nothing  of  more  vital  importance  to  the 
mining  world  than  this  that  those  who  control  these  interests  should 
restore  the  Sabbath  in  the  order  as  God  gave  it,  as  a  day  of  rest,  as  a 
day  of  holy  application  and  a  day  of  holy  conversation,  and  then  you 
will  have  in  these  mining  industries,  instead  of  what  you  have — the  very 
vestibules  of  hell — you  will  have  the  finest  representation  of  womanhood 
and  manhood  that  there  is  in  the  Christian  world,  the  finest  representa- 
tion of  the  towns  and  the  cities  and  the  highest  kind  of  Christian  civili- 
zation and  the  best  representation  of  the  best  wage  earners  of  the 
world.  I  want  to  add  that  a  brawnier,  brainier  and  higher  class  of 
workers  does  not  exist  in  the  world  than  the  mining  brain  and  brawn, 
if  he  has  equal  opportunities  with  other  classes  of  workmen. 

God  bless  you   (applause). 

THE  PRESIDENT:  Gentlemen,  we  have  two  minutes  until  the 
hour  set  for  adjournment  arrives.  Is  there  anything  further  to  come 
before  the — 

MR.  ROBERT  NEILL:  I  want  to  make  one  little  remark  in 
answer  to  the  Rev.  Mr.  White's  statement.  I  don't  want  it  to  go  out 
among  our  Eastern  people  who  are  not  acquainted  with  the  miners 
that  the  miners  are  the  worst  set  of  men  in  the  world  and  the  worst 
drunkards  in  the  world.  I  want  to  say  right  here,  while  they  are 
exposed  to  a  great  many  hardships  and  criticisms  and  so  forth,  they 
are,  a  large  proportion,  a  majority  of  the  actual  miners  are  not  only  a 


AMERICAN  MINING  CONGRESS  125 

big-hearted  set  of  men,  but  there  are  a  great  many  sober,  pure,  clean 
miners  in  the  West  and  on  the  Pacific  Coast  and  in  Alaska.  That  is 
all.  (Applause.) 

THE  PRESIDENT:  Is  there  anything  further  to  come  before 
the  Congress? 

MR.  HENRY  S.  VOLKMAR:  Mr.  President,  for  information  I 
would  like  to  make  an  inquiry  concerning  the  qualification  of  member- 
ship in  the  American  Mining  Congress;  whether  it  is  necessary  to  be  a 
resident  of  the  United  States  or  whether  our  friends  from  British  Co- 
lumbia are  competent? 

THE  SECRETARY:    Anybody  on  the  American  Continent. 

THE  PRESIDENT:  This  is  the  American  Mining  Congress.  Is 
there  anything  else  to  be  considered?  If  not,  a  motion  to  adjourn  sine 
die  is  in  order. 

MR.  ROBERT  NEILL:  We  are  all  very  reluctant  to  make  that 
motion.  We  hate  to  have  it  happen,  (laughter)  but  it  is  a  part  of  the 
order  of  business.  I  thank  the  American  Mining  Congress  for  all  its 
great  work  in  our  western  country  and  in  our  whole  country,  the  East, 
the  South,  the  North  and  West,  in  all  of  our  states  and  territories  and 
our  brethren  from  British  Columbia. 

I  say  I  hate  to  make  this  motion,  (laughter)  but  I  do  feel  and 
believe  that  this  Congress  has  been  fruitful  of  the  most  beneficial 
results  and  resolutions  and  good  fellowship  and  good  spirit,  more  so 
than  any  Congress  of  any  kind  has  ever  done. 

I  say  I  am  loath  and  slow  to  make  that  motion,  but  the  inevitable 
must  happen,  so,  therefore,  I  move  that  we  adjourn  sine  die. 

Motion  seconded  and  carried. 

Whereupon  adjournment  was  taken  sine  die. 


MEETING  OF  MEMBERS. 

TUESDAY,  NOVEMBER  26,  1912. 
8:00  P.  M. 

President  Taylor  called  the  meeting  to  order  at  eight  p.  m. 

THE  PRESIDENT:  This  is  the  annual  meeting  of  the  members 
of  the  American  Mining  Congress.  Delegates  are  not  entitled  to  vote 
at  this  meeting,  which  elects  the  Directors  for  the  coming  year.  The 
first  thing  in  order  is  the  reading  of  the  minutes  of  the  last  meeting, 
and  when  I  ask  the  Secretary  to  do  this  I  will  ask  him  at  the  same 
time  to  announce  the  number  of  delegates  and  the  proxies  which  he 
has  in  his  possession  to  be  voted  at  this  meeting. 

SECRETARY  CALLBREATH:  Mr.  President,  the  proxies  are 
in  hand  to  the  number  of  two  hundred  and  fifty-three  personal  proxies 
and  the  proxies  of  the  Illinois  Coal  Operators'  Association,  which 
maintains  ninety  members.  Those  proxies  are  made  to  Mr.  Taylor  and 
myself  jointly  and  severally.  It  is  customary  to  ask  for  proxies  be- 
cause very  often  there  are  not  enough  members  present  at  an  annual 
meeting  to  make  a  quorum  of  the  membership. 

The  Secretary  then  read  the  minutes  of  the  several  meetings  of 
the  Executive  Committee. 

THE  PRESIDENT:  Are  there  any  corrections  or  alterations  of 
the  minutes?  If  not,  a  motion  is  in  order  to  adopt  them. 

Upon  motion  duly  made  and  seconded,  the  minutes  were  formally 
approved. 

THE  CHAIRMAN:  The  Secretary's  report  is  the  next  thing 
in  the  order  of  business. 

SECRETARY  CALLBREATH:  If  you  will  pardon  me,  Mr. 
President,  I  would  like  first  to  outline  the  system  used  in  keeping  the 
accounts  of  the  Mining  Congress  in  order  that  you  may  better  under- 
stand the  report  of  the  Secretary  and  the  Auditing  Committee.  All 
moneys  are  deposited  in  the  First  National  Bank  of  Denver  which  has 
been  designated  by  the  Board  of  Directors  as  the  depository  of  the 
Association.  We  have  no  treasurer,  the  depository  being  considered  in 
lieu  of  a  treasurer.  Moneys  received  are  deposited  in  the  bank  and 
all  our  money  is  paid  out  by  checks  of  the  Association  signed  by  the 
President  and  the  Secretary  upon  bills  properly  audited  by  the  Auditing 
Committee. 

The  Financial  report  of  the  Secretary  for  the  current  year,  the 
report  of  the  Auditing  Committee  and  the  special  auditor's  report  were 
read  as  follows: 

AMERICAN   MINING  CONGRESS. 

Financial  Statement  Covering  Period  October  1,  1911  to  November   1, 

1912. 

RECEIPTS. 

Cash  on  hand  October  1,  1911 $     353.48 

Received   from    Membership    Fees $2,100.00 

Received    from    Annual    Membership    Dues 5,859.01 

Chicago    Convention    Fund    524.35 

Spokane   Convention   Fund    1,750.00 

Special  Contributions  on  account  of  work  at  Wash- 
ington, from  Alaskans  and  coal  operators 2,123.84 

Miscellaneous    Receipts     128.64 

12,485.84 


Total    Receipts     $12,839.32 


f  AMERICAN  MINING  CONGRESS  127 

DISBURSEMENTS. 

Expense   of    Washington   Office,    December    30,    1911, 

to  August  20,   1912 $3,369.26 

Expense    Chicago    Office    75.00 

Secretary's    Salary    3,000.00 

Salary   and    traveling    expense    Assistant    Secretaries, 

Organizers    and    Stenographers 3,825.46 

Printing     729.54 

Telephone    and    Telegraph    80.06 

Postage     240.00 

Rent,    Denver   Office    320.00 

Membership    Pins    140.00 

Returned  to   State   Chapters    385.00 

Bank    Exchange     24.95 

Office    Supplies    and    Miscellaneous 135.74 

$12,559.56 


Cash  in  Bank  and  Office 279.76 

Denver,   Colo.,   November   19,    1912. 

I  hereby  certify  that  the  foregoing  is  a  correct  statement  of  the 
receipts  and  disbursements  of  the  American  Mining  Congress,  for  the 
period  from  October  1,  1911,  to  November  1,  1912. 

(Signed)  J.  F.   CALLBREATH,   Secretary. 

Denver,   Colo.,    November  20,    1912. 

We,  the  undersigned  members  of  the  Auditing  Committee  of  the 
American  Mining  Congress,  having  examined  the  vouchers  and  ac- 
counts of  the  Secretary,  covering  transactions  for  the  period  from 
October  1,  1911,  to  November  1,  1912,  hereby  certify  that  we  find  the 
same  to  be  correct,  and  that  the  statement  hereto  attached  is  a  correct 
statement  of  the  financial  transactions  of  the  American  Mining  Con- 
gress during  said  period. 

D.  W.   BRUNTON, 

E.  A.  COLBURN, 

Members  Auditing  Committee. 
Mr.  Jas.  F.  Callbreath,  Sec'y  American  Mining  Congress: 

Dear    Sir:     At   your    request   we    have    audited   the    cash    account- 
vouchers,  cancelled  checks  and  bank  account  of  the  American   Mining 
Congress  from  October  1,   1911,  to  November  1,   1912.     We  find  all  in 
order  and  correct  as  per  statement  herewith. 
Respectfully  submitted, 

(Signed)  FLOYD  L.  DAGGETT. 

THE  PRESIDENT:  There  is  just  one  matter  that  the  Secre- 
tary has  not  brought  out  clearly  to  the  organization  and  that  is  a  fact 
that  1  suppose  is  little  known  to  the  majority,  that  the  salary  of  the 
Secretary  has  not  been  paid,  or  rather  is  back  from  June  of  1910,  to 
date.  He  has  received  some  money,  of  course,  since  that  time,  but 
his  salary  is  back  that  much  and  that  is  one  of  the  things  that  I  had 
reference  to  in  my  paper  last  night,  that  I  would  like  to  have  a  Com- 
mittee on  Scope  and  Finance.  I  believe  that  we  ought  to  discuss  that 
and  if  we  haven't  time  this  evening  I  think  we  should  discuss  it  to- 
morrow morning  or  set  some  time  apart  for  it.  The  Congress  has 
reached  the  stage  in  its  existence  that  something  ought  to  be  done  in 
a  financial  way  because  it  is  not  fair  to  the  Congress  or  Mr.  Callbreath 
that  one  defray  the  expenses  of  the  Congress.  It  is  sufficient  that  he 
should  give  his  time  and  labor  as  well  as  he  has  been  doing  and  as 
much  of  it  as  he  has  been  doing  without  having  to  furnish  the  sinews 
of  war  as  well,  so  that  I  would  like  to  have  this  part  thoroughly  dis- 
cussed. However,  a  motion  at  this  time  is  in  order  for  the  adoption 
of  the  Secretary's  report. 

Upon  motion  duly  made  and  seconded,  the  Secretary's  report  was 
adopted. 


128  OFFICIAL    PROCEEDINGS 

SECRETARY  CALLBREATH:  I  feel,  perhaps,  that  my  request 
will  not  be  honored,  but  I  have  repeatedly  requested  at  the  annual 
meetings  that  the  membership  itself  should  appoint  a  special  committee 
to  go  over  the  accounts.  I  would  be  pleased  to  have  this  done  as  a 
matter  of  record  so  that  the  membership  might  better  understand  how 
everything  is  being  done.  It  seems  to  me  that  this  should  be  done. 

THE  PRESIDENT:  That  is  a  matter  for  the  association  to  take 
up  and  discuss  if  they  wish  to  have  such  a  committee  appointed,  it  is 
in  line  to  do  so.  The  next  matter  is  unfinished  business.  Is  there 
any  unfinished  business  before  the  Congress? 

SECRETARY  CALLBREATH:  I  want  to  say  that  nearly  all  of 
our  business  is  unfinished.  We  hope  to  get  it  done  in  about  ten  years 
(laughter). 

THE  PRESIDENT:  The  by-laws  require  the  election  of  a  com- 
mittee called  the  Nominating  Committee  which  is  done  by  the  Congress 
itself.  A  motion  is  in  order  to  designate  a  Nominating  Committee,  to 
consist  of  five  persons. 

MR.  H.  R.  HARRIMAN:  I  understand  there  are  some  four  or 
five  vacancies  occurring  in  the  Board  of  Directors,  and  I  am  advised — 
I  am  unfamiliar  with  the  custom  of  having  this  Nominating  Committee 
appointed,  but  I  think  the  purpose  is  that  the  Nominating  Committee  be 
chosen  from  as  wide  a  field  as  possible  so  that  all  of  the  country  will 
be  represented.  For  that  purpose  I  think  it  is  customary  to  choose  a 
Nominating  Committee  from  as  many  parts  of  the  country  as  possible. 
I  therefore  move  that  the  Nominating  Committee  be  composed  of  Mr. 
Dennis,  who  greeted  us  here  so  cordially,  Governor  Allen  of  Montana, 
Doctor  Merrill  of  Utah,  Mr.  Steele  of  Alaska  and  Mr.  Malcolmson  of 
Missouri,  to  report  to  this  meeting  the  names  of  such  officers  as  they 
may  deem  wise. 

Motion  seconded  and  carried. 

THE  PRESIDENT:  I  would  just  like  to  ask  the  Secretary  to 
state  the  names  of  the  Directors  whose  terms  expire  at  this  meeting. 

SECRETARY  CALLBREATH:  There  are  five  vacancies  to  be 
filled:  D.  W.  Brunton  of  Denver,  George  Wingfield  of  Nevada,  H.  H. 
Cregg  of  Joplin,  Missouri,  John  Dern  of  Salt  Lake  City,  Utah,  and 
E.  A.  Colburn  of  Denver. 

THE  PRESIDENT:  The  names  of  the  Nominating  Committee 
are:  G.  B.  Dennis,  Washington,  Governor  W.  R.  Allen,  Montana,  Doctor 
Joseph  F.  Merrill,  Utah,  John  L.  Steele,  Alaska,  and  James  W.  Mal- 
colmson, Missouri.  This  committee  will  please  get  together  as  quickly 
as  possible  and  if  they  are  not  able  to  report  at  this  meeting  we  can 
take  an  adjournment  until  morning  when  their  recommendation  may 
be  considered.  We  will  not  have  a  great  deal  of  time  before  the  hour 
for  the  entertainment  this  evening  and  I  would  suggest  to  Mr.  Dennis 
as  Chairman  of  that  Committee  that  he  get  his  committee  together 
and  if  they  desire  an  adjournment  until  morning  we  can  take  that 
adjournment.  While  the  committee  is  acting  together  on  this  matter — 

MR.  DENNIS:  The  committee  will  report  with  me  to  some  quiet 
spot  and  go  over  this  matter. 

THE  PRESIDENT:  While  this  committee  is  getting  together 
the  question  oi  adjournment  for  a  later  report  is  in  order,  otherwise  we 
will  take  up  any  other  business  that  may  come  before  the  house  regu- 
larly. Has  any  member  anything  that  they  wish  to  bring  before  the 
meeting  at  this  time? 

MR.  H.  R.  HARRIMAN:  One  further  motion  on  my  part.  Dur- 
ing an  informal  talk  this  evening  with  some  of  my  friends  at  the  hotel, 
two  of  them  desired  to  become  members  of  this  Congress.  I  was  for- 
tunate in  finding  Mr.  Callbreath,  the  Secretary,  and  brought  them  to 
him.  I  have  since  then  been  informed  that  there  is  a  regular  committee 
to  arrange  for  new  membership  and  to  take  care  of  such  applications. 
I  would  suggest,  as  there  may  be  others  like  myself  who  have  friends 


AMERICAN  MINING  CONGRESS  129 

here  like  the  two  to  whom  I  spoke,  who  may  desire  to  become  fully 
affiliated  with  this  organization,  that  the  names  of  the  Committee  be 
read  from  the  platform  so  that  those  here  who  would  like  to  avail  them- 
selves of  their  services  can  do  so. 

THE  PRESIDENT:  I  would  like  to  ask' the  Secretary  to  make 
a  statement  with  regard  to  that. 

SECRETARY  CALLBREATH:  We  have  not  had,  during  the 
last  few  years,  a  committee  to  supervise  memberships.  We  have  felt 
that  any  man  who  was  affiliated  with  the  mining  industry  who  was 
patriotic  enough  to  contribute  to  the  work  was  probably  a  good  enough 
man  to  become  a  member,  and  so  far  as  I  know  there  has  been  no 
complaint  about  those  who  have  been  elected.  The  Vice-Presidents 
were  supposed  to  become  the  committees  on  membership  for  the  sev- 
eral states.  In  some  instances  this  has  been  a  rank  supposition  and 
in  others  the  State  Vice-Presidents  have  been  active.  I  shall  hope 
that  in  the  future  those  who  are  appointed  Vice-Presidents  shall  be  men 
who  will  consider  themselves  membership  committees  for  their  par- 
ticular states  and  endeavor  to  build  up  the  membership  as  far  as 
possible.  But  there  will  be  no  difficulty  for  those  persons  who  desire 
to  become  members  without  the  aid  of  the  committee  in  doing  so. 

THE  CHAIRMAN:  Is  there  anything  further  to  come  before 
the  Congress? 

MR.  G.  B.  DENNIS:  Mr.  President,  is  it  the  duty  of  this  com- 
mittee to  select  five  directors? 

THE  CHAIRMAN:     Five  directors  at  this  time. 

MR.  G.  B.  DENNIS:    And  that  is  all? 

SECRETARY  CALLBREATH:  Four  directors  to  serve  for 
three  years  and  one  director  for  one  year. 

MR.  G.  B.  DENNIS:  I  would  like  to  suggest  that  the  Secretary 
meet  with  us  that  we  might  talk  this  matter  over.  He  is  more  con- 
versant with  the  needs  and  names  and  would  be  of  assistance  to  us. 

COLONEL.  PERKINS:  Mr.  President,  would  it  be  in  order  to 
move  that  the  report  of  this  committee  be  received  at  11:30  tomorrow 
morning? 

THE  PRESIDENT:    It  would  be  in  order. 

COLONEL  W.  T.  PERKINS:     If  so,   I  make  that  motion. 

Motion  duly  seconded  and  carried. 

SECRETARY  CALLBREATH:  May  I  say  a  word  in  connection 
with  the  request  made  by  the  Chairman  of  the  Nominating  Committee? 
There  are  two  propositions  which  the  Secretary  has  endeavored  re- 
ligiously to  keep  his  hands  off  of,  one,  the  election  of  directors,  and 
the  other,  the  meeting  place  of  the  annual  convention.  I  felt  that  I 
ought  to  do  that.  I  don't  know  of  any  other  matters  in  connection 
with  the  Mining  Congress  work  that  I  haven't  taken  hold  of  as  vigor- 
ously as  I  knew  how,  but  in  those  two  points  I  feel  that  if  the  Chairman 
can  excuse  me,  I  will  be  obliged. 

MR.  G.  B.  DENNIS:  We  will  certainly  excuse  you  under  those 
conditions,  but  does  that  burden  and  embargo  go  to  the  Assistant  Secre- 
tary? 

SECRETARY  CALLBREATH:     I  think  it  does. 

MR.  G.  B.  DENNIS:  I  simply  make  this  request  because  we 
are  new  men  in  a  new  field. 

SECRETARY  CALLBREATH:  Perhaps  I  ought  not  to  refuse 
to  consult  with  you  but  I  would  not  like  to  even  seem  to  influence  in  any 
way  the  election  of  officers. 

MR.  G.  B.  DENNIS:  We  appreciate  that,  but  we  would  like  to 
have  you  to  meet  with  us  as  a  silent  member. 

SECRETARY  CALLBREATH:  Under  those  circumstances  I 
think  I  can  do  so. 


130  OFFICIAL    PROCEEDINGS 

THE  PRESIDENT:  I  think  we  will  order  the  Secretary  to  do  so. 
Is  there  anything  further  to  come  before  the  session?  I  would 
like  to  have  some  discussion  for  five  or  six  minutes  on  the  question  of 
a  Committee  on  Scope  and  Finance  for  this  session.  My  thought  is 
this,  gentlemen,  that  in  the  way  the  Congress  has  been  working  in  the 
last  few  years  it  is  evident  to  those  who  have  been  in  close  touch  with 
the  work  that  there  must  be  some  other  scheme  or  method  followed 
than  that  which  has  been  recently  followed.  The  work  is  too  arduous 
on  the  Secretary  and  there  is  not  enough  of  financial  support  to  do 
the  work  in  the  proper  way.  The  work  at  Washington  is  more  than 
any  two  or  three  men  can  do  during  the  sessions  of  Congress  and 
yet  we  have  delegated  that  entire  work  to  our  Secretary  and  about  the 
only  assistance  that  he  has  had  in  the  past  has  been  a  stenographer 
and  what  little  assistance  some  of  the  directors  could  give  him  and 
any  special  committees  that  might  be  there.  The  question  of  getting 
out  literature  and  securing  the  publicity  necessary  to  properly  bring 
before  congress  and  the  people  of  the  country  in  general  the  needs 
of  the  mining  industry  are  such  that  it  demands,  it  seems  to  me,  at 
this  time  something  more  in  the  way  of  financial  support  than  the 
Congress  has  received  in  the  past.  The  fact  that  the  Secretary's  salary 
is  back  for  over  two  years  is  another  item  which  should  bring  the 
attention  of  this  Congress  expressly  along  the  line  of  financial  work. 
That  is  what  I  had  in  mind  in  suggesting  that  we  take  up  the  question 
of  a  Committee  on  Scope  and  Finance.  It  may  be  possible  that  we  will 
have  to  change  the  scheme  somewhat  of  the  Congress;  in  other  words, 
that  as  at  present  constituted,  the  state  chapters  can  do  a  great  deal 
of  work  which  was  formerly  delegated  to  the  particular  directors  in  a 
section  of  the  country  and  yet  while  Denver  has  been  the  headquarters, 
it  has  been  shown  conclusively  that  during  the  sessions  of  Congress, 
at  least,  that  the  Secretary  cannot  be  in  Denver  and  do  the  work  of 
this  Congress.  Consequently,  the  entire  work  of  the  Congress  needs 
some  revision  and  it  was  with  this  in  view  that  I  suggested  that  we 
have  a  Committee  on  Scope  and  Finance.  Those  are  the  two  things 
that  are  before  us  now  in  a  way  that  we  can't  escape  very  long.  If 
we  are  not  in  a  position  to  discuss  this  tonight  it  seems  to  me  that  we 
should  set  apart  a  part  of  some  session  very  shortly,  probably  tomorrow 
if  possible,  to  have  this  thoroughly  discussed  and  try  and  arrive  at 
some  conclusion.  I  would  like  to  hear  some  discussion. 

MR.  E.  D.  SPAULDING:  I  would  suggest  that  a  committee  on 
Scope  and  Finance  be  appointed  consisting  of  one  member  from  each 
state  represented  in  this  Congress. 

Motion  seconded  and  carried. 

THE  PRESIDENT:  In  discussing  just  briefly  with  the  Secretary 
it  occurs  to  me  that  inasmuch  as  our  Resolutions  Committee  is  com- 
posed of  a  member  from  each  state  it  might  be  well  to  relegate  this 
matter  to  the  Resolutions  Committee  and  ask  them  to  bring  in  a 
report  on  that  matter. 

MR.  G.  B.  DENNIS:   I  move  you,  sir,  that  that  be  done. 

Motion  duly  seconded  and  carried. 

SECRETARY  CALLBREATH:  It  might  be  wise  for  me  to  ex- 
plain a  few  things  that  the  members  ought  to  appreciate  more  fully 
than  they  do  with  reference  to  the  work. 

The  only  reason  that  the  Secretary's  salary  is  so  much  in  arrears 
is  because  he  has  done  a  good  many  things  that  he  was  not  supposed 
to  do  originally.  He  was  more  anxious  to  do  the  work  effectively 
than  to  collect  his  salary.  The  collection  of  a  salary  would  have  been 
an  easy  matter  if  the  Secretary  had  given  that  his  attention,  but  he 
was  anxious  to  do  the  work  effectively  and  could  not  do  both.  There 
are  many  little  things  that  might  be  attended  to  by  the  Mining  Con- 
gress which  are  now  neglected.  I  have  had  many  complaints  today 
from  men  who  are  in  the  Forest  Reserves,  who  feel  that  they  have  not 


AMERICAN  MINING  CONGRESS  131 

had  fair  treatment.  It  may  be  that  a  simple  presentation  of  these 
complaints  to  the  Forestry  Department  would  have  secured  redress. 
If  that  could  be  done,  it  would  be  very  valuable  aid  to  the  prospectors 
of  the  United  States  and  the  prospector  is  the  man  to  whom  this 
organization  should  give  more  attention  and  be  more  solicitious  for 
and  treat  better  than  any  other.  It  is  the  pioneer  that  we  have  to 
thank  for  all  the  civilization  that  we  have  in  the  west.  It  is  to  the 
pioneer  and  the  prospector  that  the  civilization  in  the  West  owes  its 
birth. 

That  would  require  that  there  should  be  a  man  specially  delegated 
to  do  that  work  who  might  devote  as  much  of  his  time  as  necessary 
to  that  purpose.  He  might  not  need  to  give  his  entire  time  but  his 
service  would  always  be  in  demand  for  work  along  kindred  lines.  I 
will  give  you  an  illustration  of  how  the  work  ought  not  to  be  done. 
About  two  years  ago  the  oil  operators  of  a  western  state  were  alarmed 
by  a  bill  in  Congress  providing  for  the  withdrawal  of  the  government 
oil  lands  from  entry,  and  it  included  all  prior  locations.  Of  course,  no 
such  act  would  be  legal.  It  would  be  an  ex  post  facto  law,  prohibited 
by  the  Constitution  of  the  United  States,  but  it  would  take  a  lot  of 
money  and  a  lot  of  time  to  demonstrate  the  unconstitutionality  of  such 
an  act  in  the  courts.  So  these  people  sent  a  delegation  to  Washington 
to  tell  the  members  of  Congress  that  its  proposal  was  wrong,  that  it 
was  unconstitutional.  Now,  that  expedition  to  Washington  and  back 
again  cost  more  than  the  Mining  Congress  has  to  spend  for  a  whole 
year.  To  have  accomplished  the  same  result  would  not  have  cost 
the  Mining  Congress  more  than  a  few  dollars.  All  the  Committee 
needed  was  to  have  its  attention  called  to  the  facts.  It  was  not  neces- 
sary to  send  a  large  delegation  to  do  it.  There  are  many,  many  cases 
where  a  well  organized  force  in  Washington  could  render  service  which 
would  be  of  very  great  advantage  to  the  mining  industry. 

If  we  want  our  Western  conditions  treated  fairly  we  can  only 
expect  that  to  be  done  when  those  who  treat  them  understand  those 
conditions,  and  in  order  to  have  these  conditions  understood  we  must 
take  our  story  to  them.  This  is  an  expense  which  the  Mining  Con- 
gress now  is  not  able  to  undertake.  I  hope  that  the  Committee  on 
Scope  and  Finance  may  provide  some  method  by  which  we  can  carry 
on  the  publicity  campaign  and  tell  the  truth  concerning  the  West  to  the 
people  of  the  East.  I  think  it  very  important  to  the  West  that  a  cam- 
paign of  publicity  shall  be  inaugurated  through  which  this  may  be 
accomplished. 

There  is  one  other  thing  that  I  wish  you  would  pardon  me  for 
mentioning  at  this  time.  I  do  hope  for  better  work  by  our  state  or- 
ganizations. Each  local  section  should  undertake  to  look  after  the 
matters  in  its  district.  Each  state  chapter  should  look  after  matters  of 
state  legislation.  I  want  to  call  attention  to  the  fact  that  while  we  are 
interested  in  national  legislation,  we  are  all  interested  in  state  legisla- 
tion, and  there  are  many  things  to  come  up  in  the  state  legislatures  in 
the  next  few  months  that  should  have  attention. 

This  work  cannot  be  done  by  the  national  officers.  It  must  be 
done  by  the  members.  If  each  member  will  work  for  the  organization 
as  a  few  members  work,  the  American  Mining  Congress  will  soon  be- 
come what  its  officers  have  felt  that  it  should  be,  the  most  influential 
industrial  organization  in  the  United  States. 

MR.  H.  R.  HARRIMAN:  Before  we  adjourn  I  want  to  remark 
that  it  was  my  good  fortune  to  be  in  Washington  four  or  five  times 
this  year  and  I  saw  the  character  of  the  work  that  our  Secretary  has 
been  doing.  He  has  just  given  you  the  picture  of  what  he  wants  to 
do.  If  I  had  the  gift  of  eloquence  of  Mr.  Dennis  or  Governor  Allen  or 
many  of  those  who  have  spoken  to  you  today  for  five  minutes  I  could 
describe  to  you  the  herculean  work  that  he  has  been  doing  there  and 
the  fine  work  he  has  been  doing  there.  He  has  been  doing  work  for 
which  he  is  noted  and  known  all  over  Washington.  He  has  been  for- 
warding the  cause  of  this  organization  more  than  any  of  you  think. 


132  OFFICIAL    PROCEEDINGS 

I  move  you  that  the  report  of  the  Committee  on  Scope  and  Finance 
be  made  a  special  order  of  business  as  soon  as  they  are  able  to  report 
tomorrow  morning. 

Motion  seconded  and  carried. 

THE  PRESIDENT:  The  hour  has  passed  when  we  are  to  be 
entertained  by  an  illustrated  lecture,  illustrating  the  scenes  of  Alaska. 
This  lecture  is  to  be  given  by  Mr.  C.  M.  MacPherson  of  Alaska. 

Thereupon  an  adjournment  was  taken  to  10  a.  m.,  Nov.  27,  1912. 

ADJOURNED  MEETING  OF  MEMBERS. 
2:00  P.  M. 

Meeting  called  to  order  by  President  Taylor  at  2  p.  m. 

THE  PRESIDENT:  The  motion  adopted  this  morning  makes 
the  report  of  the  Committee  on  Nominations  the  order  of  business  at 
this  time.  This,  of  course,  is  a  resumption  of  the  meeting  of  the  mem- 
bers of  the  Mining  Congress  alone.  Is  the  Committee  ready  to  report? 

MR.  G.  B.  DENNIS:  Mr.  President,  Ladies  and  Gentlemen:  The 
burden  placed  upon  this  Committee  has  been  very  sensibly  felt  by  it. 
While  it  was  not  difficult  to  secure  good  men  for  the  directorate,  it 
was  difficult  to  select  those  who  would  give  the  office  the  attention  it 
requires.  Your  committee  feels  that  neither  President  nor  Secretary 
alone  or  jointly  can  compass  and  successfully  carry  forward  the  de- 
tails incident  to  so  great  an  institution  as  the  American  Mining  Con- 
gress, and  that  what  they  must  have,  is  the  assistance  of  the  best 
brain  of  a  capable  directorate.  Mr.  President,  the  nominations  pro- 
posed for  tt\e  new  directorate  are:  D.  W.  Brunton  of  Denver  (ap- 
plause). We  feel  that  his  name  and  his  co-operation  would  give  grace 
to  this — to  any — Congress  or  to  any  assembly  of  men.  The  name  of 
W.  G.  Conrad  of  Helena  (applause),  a  man  who  has  devoted  his  brain, 
time  and  money  to  the  up-building  of  the  State  of  Montana  and  its 
various  mining  interests,  and  whose  name  is  a  synonym  of  progress. 
The  name  of  George  H.  Dern  of  Salt  Lake  (applause),  who  is  pro- 
posed to  succeed  his  father,  Mr.  John  Dern — who  is  worthy  of  the 
honor — and  for  whom  we  bespeak  active  co-operation  in  the  work  of 
this  Congress.  The  name  of  Harry  L.  Day  of  Wallace,  Idaho  (ap- 
plause), a  Coeur  d'Alene  pioneer — a  man  who  has  gone  to  the  front  in 
mining,  who  developed  the  great  Hercules  mine  of  the  Coeur  d'Alenes, 
who  is  the  President  of  the  Federal  Mining  Company,  a  man  great  in 
his  own  country  and  who  would  be  great  in  any  country.  These  named 
gentlemen  are  for  the  three-year  term.  For  the  one-year  term,  Mr. 
President,  we  name  the  Honorable  W.  B.  Shackelford  of  Joplin,  Mo. 
(applause),  a  large  zinc  producer.  This,  Mr.  President,  constitutes  the 
work  of  your  Committee. 

THE  PRESIDENT:  Gentlemen,  you  have  heard  the  report  of 
the  Committee,  what  is  your  pleasure? 

COLONEL  W.  T.  PERKINS:  I  move  that  the  report  of  the 
Committee  be  accepted  and  the  Secretary  be  instructed  to  cast  the 
unanimous  vote  of  the  Association  for  the  names  given. 

MR.  ROBERT  NEILL:  Thanking  the  Committee  for  its  able 
work. 

Motion  seconded  and  carried. 

SECRETARY  CALLBREATH:  In  accordance  with  the  instruc- 
tions of  the  Convention  I  have  cast  the  ballot  of  the  members  present 
in  person  and  by  proxy  for  directors  as  follows: 

For  one  year — W.  B.  Shackelford  of  Missouri. 

For  three  years — David  Brunton  of  Colorado,  George  H.  Dern  of 
Utah,  W.  G.  Conrad  of  Montana  and  Harry  L.  Day  of  Idaho. 

THE  CHAIRMAN:  I  declare  the  election  of  these  gentlemen  to 
the  directorate.  Is  there  any  further  business  to  come  before  the 


AMERICAN  MINING  CONGRESS  133 

meeting  of  the  Congress?  If  not,  a  motion  to  adjourn  the  Member's 
meeting  is  now  in  order.  Understand,  gentlemen,  this  is  the  meeting 
of  the  members  of  the  Association  which  was  held  last  night  and 
continued  until  today  to  receive  the  report  of  this  Committee. 

MR.  G.  B.  DENNIS:  Mr.  President,  with  your  permission,  I 
would  like  to  say  just  one  word. 

THE  CHAIRMAN:    Mr.  G.  B.  Dennis. 

MR.  DENNIS:  The  City  of  Spokane  is  the  center  of  the  tribu- 
tary mining  country,  and  as  stated  in  my  opening  talk  as  Chairman  of 
this  Convention,  aspires  to  be  the  permanent  home  of  the  American 
Mining  Congress.  Whether  in  your  judgment  Spokane  is  the  proper 
location  or  not  remains,  of  course,  for  you  to  determine.  There  are 
other  locations  which  perhaps  are  just  as  desirable,  the  City  of  Salt 
Lake,  of  Denver,  of  Helena,  and  last  and  by  no  means  least,  Mr.  Presi- 
dent, the  National  Capital  at  Washington,  D.  C.  All  that  I  can  say  in 
support  of  Spokane  is  that  it  is  very,  very  rapidly  becoming  a  great 
mining  center, — that  its  men  are  wedded  to  the  cause  of  mining — and 
that  the  development  of  its  surrounding  mines  is  great  and  becoming 
greater  every  day,  and  that  if  in  your  wisdom  you  will  compliment  the 
city  of  Spokane,  I  pledge  to  the  Congress  the  construction  of  a  mining 
temple  suitable  and  adequate  for  the  needs  of  the  Association,  be  its 
cost  a  hundred  or  five  hundred  thousand  dollars.  Gentlemen  of  this 
Congress,  you  can  have  it  for  the  asking.  Spokane  is  no  more  forward 
in  this  proffer  than  it  has  repeatedly  been  in  other  lines  of  endeavor. 
It  is  in  the  hands  of  the  Congress  to  do  with  as  it  pleases.  I  thank 
you,  sir  (applause). 

THE  PRESIDENT:  You  have  heard  the  statement  by  Mr.  Den- 
nis; what  is  your  desire? 

MR.  G.  B.  DENNIS:  I  would  suggest,  Mr.  President,  that  the 
matter  be  taken  up  in  Committee  and  it  asked  to  report  back  to  this 
convention. 

THE  PRESIDENT:  Do  you  desire  a  special  committee  on  that, 
or  do  you  prefer  to — 

MR.  G.  B.  DENNIS:    No,  sir;  that  is  a  matter  for  your  election. 

THE  PRESIDENT:  I  am  going  to  ask  the  Secretary  to  make  a 
statement  on  this,  as  I  am  not  very  familiar  with  what  has  been  done 
in  the  past. 

SECRETARY  CALLBREATH:  Mr.  President  and  gentlemen  of 
the  convention:  This  is  a  matter  which  ought  to  be  decided  by  the 
members  who  are  supporting  the  organization.  It  seems  to  me  before 
making  a  decided  change  which  will  fix  the  future  of  the  organization, 
that  all  should  be  considered,  that  all  cities  desiring  to  compete  for 
this  privilege  might  have  an  opportunity  to  be  heard,  and  I  would 
suggest  that  a  motion  would  be  proper  to  the  effect  that  the  proposition 
be  submitted  to  all  of  the  cities  which  might  desire  to  make  a  proposi- 
tion to  the  directors  of  the  Mining  Congress  looking  to  the  re-estab- 
lishment of  the  permanent  headquarters  of  the  Mining  Congress  based 
upon  the  propositions  which  might  be  made  by  the  various  cities. 
These  could  be  submitted  to  the  Directors  and  the  Secretary  could 
submit  the  various  propositions  by  letter  vote  to  all  of  the  members, 
leaving  to  the  membership  to  say  which  of  these  propositions  should 
be  accepted.  I  think  that  would  be  a  way  fair  to  all  parties  (applause). 

MR.  G.  B.  DENNIS:  Mr.  Secretary,  I  wish  to  make  simply  this 
statement,  that  Spokane  does  not  propose  to  take  from  any  other 
location  what  would  be  best  for  the  American  Mining  Congress — that 
Spokane  is  built  upon  broad  lines — that  its  people  will  contribute  to 
any  city  chosen  as  a  location  for  the  permanent  seat,  but  naturally  pre- 
fers that  that  city  be  Spokane.  The  Secretary's  statement  that  all 
members  of  this  Association  should  have  a  vote  upon  this  question  is 
to  my  mind  perfectly  right.  I  simply  wish  you  to  know  that  Spokane 
stands  in  the  front  rank  of  the  proffer  (applause). 


134  OFFICIAL   PROCEEDINGS 

THE  PRESIDENT:  In  behalf  of  the  Congress,  I  wish  to  thank 
Mr.  Dennis  for  this  offer  and  assure  him  that  it  will  be  given  due  con- 
sideration. Is  there  any  further  business  to  come  before  the  session? 
If  not,  a  motion  to — 

COLONEL  W.  T.  PERKINS:  Mr.  President,  does  that  require 
a  motion  in  accodance  with  Mr.  Dennis's  suggestion? 

THE  CHAIRMAN:    A  motion  would  be  in  order. 

COLONEL  PERKINS:  If  so,  I  move  that  the  offer  made  by 
Spokane  through  Mr.  Dennis  be  accepted  by  the  Congress  for  con- 
sideration and  submitted  to  the  Board  of  Directors  with  instructions 
to  them  to  request  offers  from  other  cities  who  may  be  interested  in 
offering  a  permanent  home  for  the  Mining  Congress,  and  that  the 
Board  of  Directors  submit  the  same  to  the  members  of  the  Congress 
by  mail  or  at  the  next  annual  session  as  in  their  judgment  they  shall 
consider  best. 

Motion  seconded  and  carried. 

THE  CHAIRMAN:  Is  there  any  further  business?  If  not  a 
motion  to  adjourn  will  be  in  order. 

Motion  duly  made  and  seconded  and  was  declared  carried. 


The  President's  Annual  Address. 

SAMUEL  A.   TAYLOR, 
PITTSBURGH,  PA. 


The  main  purpose  of  my  address  shall  be  the  placing  before  the 
mining  congress  some  of  the  problems  and  conditions  which  exist 
in  the  mining  industry  today,  and  to  find  if  possible  a  solution  for 
some  of  them. 

In  the  consideration  of  these  things  we  will  endeavor  to  ascer- 
tain what  bearing  The  American  Mining  Congress  has  upon  these 
problems.  It  is  stated  and  generally  taught  by  scientific  men  that 
the  human  body  changes  all  of  its  parts  every  seven  years.  If  this 
be  true,  the  mining  congress  as  an  organization  has  during  the 
period  of  its  past  existence  passed  through  two  such  periods,  and 
is  now  starting  upon  a  new  cycle  of  existence.  The  question  which 
naturally  arises  at  this  juncture  is  whether  the  work  of  the  con- 
gress has  been  completed,  or  if  there  is  still  a  work  for  it  to  per- 
form, how  it  can  best  be  accomplished. 

It  seems  pertinent  at  this  point  to  stop  long  enough  to  review 
somewhat  the  incidents  leading  up  to  the  organization  of  The 
American  Mining  Congress,  and  to  ascertain  whether  or  not  there 
are  still  existing  any  such  conditions  or  problems  that  can  best  be 
dealt  with  through  such  a  national  organization  as  this  body.  If  it 
is  shown  that  the  congress  has  completed  its  work,  then  it  should 
cease  to  exist.  If  on  the  other  hand  it  be  shown  that  there  is  still  a 
demand  for  such  an  organization  as  The  American  Mining  Con- 
gress, the  next  question,  of  course,  will  be  as  to  whether,  as  it  is 
now  organized,  it  is  properly  equipped  for  doing  the  work  and  solv- 
ing the  problems  presented  to  it  in  the  most  effective  way. 

The  statement  has  been  made  in  the  call  for  this  meeting  that 
'The  American  Mining  Congress  as  it  now  exists  is  a  practical 
organization,  devoting  itself  to  the  economic,  administrative  and 
commercial,  of  what  might  be  termed  Mining  Politics,  rather  than 
to  the  technical  phases  of  mining." 

"Its  annual  conventions  are  held  for  the  purpose  of  keeping  in 
closer  touch  with  the  needs  of  the  Mining  Industry.  They  provide 
an  open  forum  for  full  discussion  of  the  more  important  subjects 
through  which  all  persons  who  have  plans  for  the  betterment  of 


136          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

mining  conditions  can  be  heard,  and  through  which  the  organiza- 
tion can  be  directed  in  the  channels  of  most  effective  effort." 

With  this  statement  as  a  basis  let  us  consider  the  conditions 
more  in  detail.  I  am  not  very  familiar  with  the  early  history  of  the 
congress  except  as  to  this  feature,  that  there  were  so  many  prob- 
lems especially  connected  with  the  precious  metal  mining  of  the 
western  section  of  the  United  States  that  called  for  solution,  or  at 
least  needed  to  be  brought  to  the  attention  of  the  public,  in  such  a 
way  that  they  might  help  remedy  the  difficulties,  that  it  was  deemed 
wise  by  those  who  were  in  touch  with  the  situation  to  call  a  na- 
tional conference  of  mining  men.  This  it  seems  by  the  records 
was  done  in  a  temporary  meeting  held  July  I,  1898,  in  Denver, 
Colorado.  At  this  meeting  a  permanent  organization  was  formed. 
The  second  meeting  was  held  in  Salt  Lake  City,  Utah,  in  July,  1898. 
The  third  session  was  convened  at  Milwaukee,  Wisconsin,  in  July, 
1899,  but  adjourned  to  meet  in  June,  1900,  at  the  same  place.  The 
fourth  session  was  convened  in  July,  1901,  in  Boise,  Idaho,  and  the 
fifth  session  convened  in  September,  1902,  in  Butte,  Montana.  The 
sixth  session  was  held  in  September,  1903,  at  Deadwood  and  Lead, 
South  Dakota. 

Up  to  this  time  a  great  many  mining  problems  came  before  the 
convention  for  consideration,  but  as  before  stated  they  had  all 
practically  to  do  with  matters  pertaining  to  precious  metal  mining 
alone,  and  at  this  stage  in  the  history  of  the  organization  so  diversi- 
fied were  the  interests  that  it  seemed  almost  impossible  to  coalesce 
or  bring  them  together,  on  any  common  ground.  The  mining  con- 
gress was  at  this  point  threatened  with  disruption,  and  only  by  the 
superb  executive  ability  of  Judge  J.  H.  Richards,  who  was  then 
elected  president,  was  it  brought  through  this  crisis,  and  made  the 
effective  agency  which  it  has  become  for  carrying  on  the  work  con- 
nected with  mining.  Judge  Richards  served  as  the  president  for 
seven  consecutive  years  from  1903  to  1909,  during  which  time  the 
congress  met  at  Portland,  Oregon,  El  Paso,  Texas,  Denver,  Colo- 
rado, Joplin,  Missouri,  Pittsburgh,  Pennsylvania,  and  Goldfield, 
Nevada.  At  the  eighth  session  at  El  Paso  in  1905  another  great 
event  in  the  history  of  the  organization  took  place,  James  F.  Call- 
breath,  Jr.,  of  Denver,  Colorado,  was  elected  secretary,  and  without 
criticism,  or  any  reflection  on  any  of  the  former  officers  of  the  asso- 
ciation, The  American  Mining  Congress  seemed  from  this  time 
forth  to  take  on  a  new  lease  of  life,  until  now  it  is  an  active  power 
in  the  mining  affairs  of  the  United  States.  There  were  so  many 
questions  calling  for  attention  such  as  the  Smelter  Rates,  the  Re- 


PRESIDENT'S    ANNUAL    ADDRESS.  137 

vision  of  the  Mining  Laws,  the  Land  and  Claim  Laws  pertaining 
to  mining,  and  many  others  which  in  their  consideration  called  for 
such  master  minds  as  Judge  Richards'  and  Secretary  Callbreath's. 
These  various  questions  through  the  efforts  of  the  officials  of  the 
mining  congress  were  brought  either  to  a  successful  conclusion  or 
put  in  such  form  that  since  that  time  very  material  progress  has 
been  made  toward  the  solution  of  them.  That  the  congress  has 
grown  in  importance  and  power,  and  today  comprises  a  large  scope 
of  activity,  is  due  to  no  one  thing  more  particularly  than  that  the 
officials  of  the  congress  have  been  wide  awake  to  the  situation  and 
cognizant  of  every  event  that  has  taken  place  that  in  any  way  bore 
on  the  mining  interests.  In  1907  and  1908  it  became  very  apparent 
to  the  officers  and  those  interested  in  the  work  of  The  American 
Mining  Congress  that  if  the  congress  was  to  become  the  effective 
agent  that  it  should,  and  do  the  great  work  that  was  then  before  it, 
that  it  must  broaden  its  field,  and  instead  of  confining  its  work  to 
the  interests  of  the  western  states  alone,  that  it  must  reach  out  and 
include  in  its  plans  all  branches  of  mining,  and  take  up  for  consid- 
eration not  only  the  problems  that  confronted  the  precious  metal 
mining  interests  of  the  west,  but  include  those  of  the  extreme 
Northwest,  or  Alaska,  as  well  also  those  of  the  east  and  middle 
states,  giving  consideration  to  matters  pertaining  to  coal  mining, 
iron  ore,  and  clay  mining  interests. 

Pittsburgh  was  therefore  selected  for  the  place  of  meeting  for 
the  1908  congress  and  at  this  meeting  not  only  were  the  Clay  and 
Iron  Ore  Mining  interests  represented  but  the  great  Coal  Industry 
was  largely  represented  in  this  convention  and  the  problems  con- 
fronting it  received  a  great  deal  of  discussion  and  consideration. 

It  was  very  apparent  at  this  time  that  a  national  organization 
such  as  The  American  Mining  Congress  was  not  only  a  necessity 
for  bringing  the  problems  of  a  specific  mining  district  or  industry 
to  the  attention  of  those  who  could  help  solve  her  problems  but 
to  have  a  disinterested  organization  such  as  the  mining  congress, 
composed  as  it  was  not  only  of  producers  of  coal  and  various  min- 
erals but  users  as  well  of  these  minerals,  which  made  it  cosmopoli- 
tan in  its  character,  and  through  this  very  fact  have  an  influence 
in  shaping  the  laws  of  the  National  Congress,  thus  producing  the 
greatest  benefit  to  the  mining  industry.  At  the  Pittsburgh  meet- 
ing great  stress  was  laid  upon  the  importance  of  the  mining  in- 
dustry by  a  comparison  of  its  immense  monetary  value  as  com- 
pared with  some  other  industries  of  the  country,  such  as  agricul- 
ture. It  was  at  this  time  also  specially  brought  to  the  attention  of 


138          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

The  American  Mining  Congress  that  in  order  to  bring  the  mining 
situation  properly  before  the  United  States  Congress  at  Washing- 
ton so  as  to  secure  such  national  aid  to  the  mining  industry  as  it 
should  receive,  that  the  industry  should  be  represented  in  the 
National  Government  in  the  same  way  that  the  agriculture  de- 
partment was  represented,  and  if  such  a  department  could  be  ob- 
tained, then  mining  would  be  benefited,  in  like  manner  and  propor- 
tion as  had  been  the  result  of  the  Department  of  Agriculture  to  the 
farms  of  this  country. 

This  situation  was  so  apparent  to  all  giving  consideration  to 
the  subject  that  from  this  time  forth  and  up  to  the  present  time, 
it  was  deemed  necessary  that  the  secretary  and  as  many  members 
of  the  mining  congress  as  possible,  should  look  closely  into  the 
matter  of  legislation  at  Washington  in  order  that  as  much  benefit 
as  possible  might  accrue  to  the  industry  as  a  whole.  At  about  this 
time  the  great  question  of  Conservation  was  brought  to  the  special 
attention  of  the  entire  country  and  in  some  cases  to  the  great  det- 
riment of  the  mining  industry.  The  Land  Laws  of  the  country 
were  such  that  they  required  revision  in  order  that  justice  should 
be  meted  out  to  the  prospectors  of  claims  and  to  those  who  would 
develop  the  claims  after  they  were  prospected.  Following  quickly 
in  the  wake  of  the  above  conditions  came  the  question  of  establish- 
ing a  Department  of  Mining  in  the  Government  organization  at 
Washington,  whose  purpose  should  be  to  look  after  the  welfare  of 
the  mining  industry.  The  work  necessary  to  secure  this  depart- 
ment was  of  such  great  magnitude  that  many  despaired  of  ever 
being  able  to  accomplish  anything  in  this  line,  as  most  all  of  the 
leading  statesmen  were  opposed  to  the  creating  of  any  more  de- 
partments or  bureaus  in  the  Government  organization,  but  after 
following  this  matter  through  various  situations,  on  account  of 
some  great  accidents  in  the  coal  mining  industry  which  occurred 
about  that  time,  the  task  was  accomplished  through  the  leadership 
of  The  American  Mining  Congress,  supplemented  and  supported 
by  various  individuals  connected  with  the  different  mining  indus- 
tries, securing  a  Bureau  of  Mines  in  the  Department  of  the  In- 
terior at  Washington.  Since  the  establishment  of  this  bureau,  with 
Dr.  J.  A.  Holmes  as  its  director,  no  one  questions  the  judgment  of 
Congress  in  passing  the  necessary  legislation  to  establish  it.  The 
many  investigations  which  have  been  carried  on  particularly  for 
the  coal  mining  industry  has  shown  the  importance  of  this  work 
to  the  Coal  Industry.  This  work  has  also  brought  to  the  attention 
of  Congress  the  necessity  of  broadening  the  scope  of  this  Mining 


PRESIDENT'S    ANNUAL    ADDRESS.  139 

Bureau  and  extending  its  investigation  to  the  problems  of  precious 
metal  mining  in  the  west.  The  Mining  Congress  has  worked  hard 
for  the  accomplishment  of  this  condition,  truly  by  a  circuitous 
route,  passing  first  through  the  precious  metal  mining  industry, 
then  through  the  coal  mining  industry,  back  again  to  the  precious 
metal  mining  industry,  until  now  it  seems  that  the  precious  metal 
mining  of  the  west  is  about  to  receive  the  assistance  which  they 
have  been  striving  for  for  the  past  fifteen  years  or  more,  and  which 
we  are  glad  to  say  has  now  been  in  a  measure  accomplished 
through  a  preliminary  appropriation  of  $50,000  at  the  last  session 
of  Congress  to  begin  investigations.  It  is  confidently  hoped  that 
in  the  expenditure  of  this  small  appropriation  such  results  will  be 
obtained  as  will  guarantee  the  necessary  future  appropriation  for 
further  investigations. 

From  this  rehearsal  of  the  Bureau  of  Mines  legislation  it  is 
very  apparent  that  to  accomplish  any  definite  results  for  any  sec- 
tion of  the  country  in  the  way  of  bettering  conditions,  it  can  only 
be  done  by  united  action. 

Another  problem  which  was  brought  to  the  attention  of  the 
mining  congress  and  which  was  taken  up  by  them  in  a  way  that  no 
other  organization  could  do  was  the  question  of  the  Workmen's 
Compensation.  This  was  ably  handled  by  a  committee  of  the 
mining  congress  composed  as  it  was  of  men  who  had  intimate 
knowledge  of  this  subject  as  applied  to  mining,  and  who  could 
doubtless  in  no  other  way  have  been  brought  together.  The  result 
of  their  deliberations,  after  approximately  two  years  of  work,  was 
to  formulate  a  bill,  which  was  recommended  and  approved  by  a 
later  meeting  of  the  mining  congress  designed  for  passage  by  the 
various  state  legislatures.  In  order  to  show  the  importance  of  this 
work,  it  might  be  said  that  during  the  period  that  this  matter  was 
under  consideration  and  since  the  committee  has  made  its  report 
no  less  than  thirteen  or  fourteen  different  states  have  passed 
workmen's  compensation  acts.  Some  of  them  very  similar  to  the 
bill  prepared  by  the  committee  of  the  Mining  Congress,  others 
differing  quite  materially  from  them,  but  there  is  no  doubt  in  my 
mind  that  all  of  these  various  bills  that  were  passed  by  the  different 
states  received  a  great  impetus  by  the  influence  of  what  has  been 
done  by  and  through  The  American  Mining  Congress.  Another 
matter  which  is  almost  a  counterpart  of  this  was  the  question  of 
*!ie  Prevention  of  Mine  Accidents.  The  work  and  report  of  this 
committee  of  the  different  conditions  to  be  followed  in  mining  has 
been  of  great  advantage  in  the  way  of  prevention  of  mine  acci- 


140          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

dents.  Still  another  work  of  the  Mining  Congress  that  has  been 
of  very  great  good  is  that  done  by  a  committee  on  the  Standardi- 
zation of  Electrical  Equipment  for  coal  and  metal  mines.  The 
committee  on  the  coal  mining  section  made  a  report  several  years 
ago  which  has  been  submitted  to  a  number  of  different  organiza- 
tions and  which  has  received  very  little  criticism  from  any  source 
and  very  high  praise  from  many  quarters,  in  fact  two  years  ago 
the  legislature  of  Pennsylvania  passed  a  new  mining  code  which 
embraced  the  report  of  the  committee  of  the  Mining  Congress 
almost  verbatim.  Other  committees  of  this  congress  such  as  that 
on  Forestry  Relation,  Revision  of  Mineral  Land  Laws,  Smelter 
and  Freight  Rates,  and  Federal  Legislation,  have  all  had  problems 
assigned  to  them  to  consider,  and  their  reports  from  time  to  time 
as  given  to  the  Mining  Congress  have  been  of  such  great  impor- 
tance that  we  can  scarcely  estimate  the  value  of  them  at  the  present 
time.  Again  a  committee  which  has  labored  assiduously  for  sev- 
eral years  is  the  committee  on  "Alaskan  Affairs"  and  probably 
during  no  time  has  there  been  such  activity  in  connection  with 
Alaskan  affairs  as  during  the  past  year.  The  committee  as  con- 
stituted during  the  last  year  deserves  the  very  highest  commenda- 
tion of  this  congress  for  the  able  and  arduous  work  which  it 
performed  in  connection  with  the  various  bills  which  were  before 
the  last  session  of  Congress. 

I  do  not  by  any  means  claim  that  I  have  gone  over  all  the 
problems  that  have  come  before  the  Mining  Congress  for  consider- 
ation, but  this  brief  review  will  show  conclusively  the  advantage 
that  The  American  Mining  Congress  has  been  to  the  Mining  In- 
dustry in  the  past.  The  Mining  Industry,  however,  has  before  it 
today  many  problems  that  are  equally  as  important  as  those  with 
which  it  has  already  dealt  and  some  of  those  heretofore  enumerated 
are  only  in  their  infancy  and  will  require  very  careful  consideration 
in  the  future. 

First,  Safety  and  Efficiency  in  mining  operations.  This  is 
a  large  question  and  one  that  remains  so  constantly  before  the 
mining  fraternity  that  it  goes  without  saying  that  it  will  be  a  live 
issue  for  many  years  to  come. 

Second,  the  question  of  Conservation  which  has  been  before 
the  Mining  Congress  for  a  great  while  is  probably  one  of  the  great 
things  for  the  future.  Not  in  the  sense  that  some  would  define 
conservation  but  in  the  broader  sense  of  true  conservation,  which 
means  not  only  the  conserving  of  the  interests  of  one  phase  of  af- 
fairs but  conservation  in  all  its  broader  application  to  the  present 


PRESIDENT'S    ANNUAL    ADDRESS.  141 

generations  as  well  as  those  to  follow.  This  is  exemplified  clearly 
in  statistics  regarding  the  amount  of  coal  lost  in  the  production  of 
the  present  large  output  of  the  mines  of  this  country,  which 
amounts  to  practically  50  per  cent.  In  other  words,  in  the  produc- 
tion of  coal  of  this  country,  which  is  practically  five  hundred  mil- 
lion tons,  it  is  estimated  that  two  hundred  and  fifty  million  tons 
were  lost  and  in  the  production  of  this  coal  there  were  employed 
553,000  men,  of  whom  2,835  l°st  their  lives  and  many  thousands 
more  were  maimed.  The  true  conservation  will  endeavor  to  pre- 
vent the  continuing  of  these  conditions  as  much  as  possible.  This 
is  only  one  example  of  what  conservation  should  embrace.  In 
every  other  branch  of  mining  there  are  similar  conditions  which 
require  specific  consideration  and  so  great  is  this  problem  that  there 
will  be  ample  work  to  do  for  years  to  come  for  some  such  organi- 
zation as  The  American  Mining  Congress. 

Third,  The  Mining  Congress  has  in  the  past  raised  its  voice 
against  the  faker  in  mining  investments  and  it  has  before  it  now  in 
no  less  degree  than  ever  before  the  same  question  of  stimulating 
investments  in  practical  mining  operations,  in  a  straightforward 
legitimate  way,  and  probably  no  organization  stands  today  in  such 
a  strong  position  between  the  prospector  and  the  capitalist  as  does 
The  American  Mining  Congress,  and  if  she  will  exert  her  powerful 
influence  toward  eliminating  the  false  promoter  she  will  have  ac- 
complished a  great  good  to  the  commercial  side  of  mining  in  our 
country. 

Fourth,  during  the  past  few  years  there  has  been  such  a  diver- 
sity of  laws  in  the  different  states  controlling  and  governing  mining 
operations  that  it  is,  to  say  the  least,  very  embarrassing  to  persons 
engaged  in  the  mining  business.  This  could  be  remedied,  or  at 
least  helped  very  much,  if  the  different  states  could  be  brought  to 
pass  uniform  laws  governing  this  question,  and  here  again  the  Min- 
ing Congress  can  exert  a  great  influence.  This  influence  should 
not  be  confined  to  the  individual  states  but  should  also  be  applied 
to  the  Federal  Government  and  should  endeavor  to  have  such  Fed- 
eral co-operation  as  will  solve  a  great  many  of  the  difficult  problems 
which  pertain  to  economic  production,  treatment  and  transportation 
of  minerals,  which  are  essential  to  the  upbuilding  of  the  mining 
business. 

Fifth,  for  some  years  past  there  has  been  great  agitation  in 
connection  with  the  Federal  Laws  pertaining  to  control  of  Mineral 
Lands,  Water  Power  and  Rights  of  Way  over  the  Public  Domain, 
as  well  also  the  operation  of  what  is  known  as  the  Sherman  Anti- 


142          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

Trust  Law  as  applied  to  combinations  of  capital  engaged  in  mining. 
All  of  these  in  their  various  ramifications  need  not  only  present 
but  future  attention  if  they  shall  be  guided  in  the  proper  channels 
to  the  best  interests  of  those  engaged  in  mining.  This  feature  alone 
is  so  tremendous  that  it  is  of  itself  sufficient  to  require  the  attention 
©f  The  American  Mining  Congress  for  some  years  to  come. 

Sixth,  the  matter  of  Workmen's  Compensation  referred  to 
above  is  practically  in  its  infancy  and  while  our  Congress  has  done 
much  in  this  respect,  there  still  remains  a  great  deal  that  may  be 
accomplished  through  its  power  and  influence  in  the  future. 

Seventh,  Alaskan  conditions  which  during  the  past  few  years 
have  received  much  consideration  by  The  American  Mining  Con- 
gress must  of  necessity  receive  a  great  deal  of  further  considera- 
tion before  conditions  in  that  great  territory  of  the  Northwest  shall 
be  satisfactorily  solved,  not  only  to  the  residents  of  Alaska  but  to 
all  of  those  interested  in  any  way  in  her  development. 

Eighth,  there  are  many  other  problems  such  as  the  use  of 
electricity  in  mining  operations,  further  revision  of  Mineral  Land 
Laws,  Federal  Aid  for  Mining  Schools,  Interstate  Trade  Commis- 
sions, etc.,  etc.,  that  call  loudly  for  assistance  through  some  national 
organization  such  as  The  American  Mining  Congress. 

When  we  consider  the  subjects  that  have  been  taken  up  by 
the  National  Government  and  different  state  legislatures  and  the 
actions  taken  thereon,  they  indicate  plainly  that  The  American  Min- 
ing Congress  is  at  least  one  of  the  leaders  of  advanced  thought  in 
all  subjects  pertaining  to  mining,  by  the  consideration  that  these 
various  legislative  bodies  have  given  to  the  deliverances  that  this 
Congress  has  made  on  the  subjects  so  considered. 

It  would  seem  therefore  from  this  brief  review  of  these  various 
matters  that  instead  of  the  Mining  Congress  having  accomplished 
its  mission  along  these  lines,  that  it  has  just  begun  to  show  the 
great  importance  of  its  work  and  through  its  efforts  of  the  past  few 
years  it  surely  has  demonstrated  beyond  all  question  of  doubt  not 
only  the  importance  but  the  necessity  of  establishing  in  the  future 
a  representative  of  this  congress  in  Washington. 

Whether  the  headquarters  or  central  office  of  the  Mining  Con- 
gress should  be  in  Washington  or  not  should  be  a  matter  for  very 
careful  consideration,  but  to  some  of  those  who  have  been  on  the 
firing  line  it  would  seem  that  the  work  of  The  American  Mining 
Congress,  especially  with  reference  to  legislation,  cannot  be  carried 
on  successfully  without  some  organization  or  central  office  or  head- 
quarters in  Washington.  This  office  should  be  maintained  during 


PRESIDENT'S    ANNUAL    ADDRESS.  143 

the  entire  session  of  the  National  Congress,  and  consequently  it 
becomes  a  grave  question  as  to  whether  or  not,  if  the  efficiency 
of  The  American  Mining  Congress  is  to  be  considered,  the  head- 
quarters should  not  be  in  Washington  instead  of  some  of  the  other 
cities.  From  the  changes  in  organization  that  have  come  about  in 
The  American  Mining  Congress  in  the  past  few  years,  namely  in 
the  establishment  of  the  various  State  Chapters,  it  would  seem  to 
me  that  the  logical  arrangement  might  be  to  have  the  central  office 
in  Washington,  so  that  legislation  from  all  sections  of  the  country 
could  be  attended  to  properly.  To  those  who  have  been  in  close 
touch  with  the  secretary's  work,  at  Washington  during  the  past  few 
years,  it  is  apparent  at  once  how  much  he  has  been  crippled  in  his 
work  by  not  having  the  necessary  support.  The  work  has  been 
carried  on  in  small  and  inadequate  quarters.  The  secretary  has 
had  little  assistance,  thus  making  it  almost  impossible  for  him  to 
attend  to  the  many  details  that  arose  in  the  various  questions  that 
came  up  before  Congress.  It  seems  therefore  logical  to  say  that  the 
present  demands  of  the  Mining  Congress  are  such  that  greater 
financial  assistance  must  be  rendered  in  order  that  the  secretary, 
if  the  work  should  continue  to  be  delegated,  as  it  has  been,  largely 
to  him,  should  be  supported  in  the  way  of  additional  help  and 
money  to  defray  the  expense  of  the  campaigns  that  are  necessary 
to  be  waged  in  connection  with  questions  that  come  before  Con- 
gress. 

I  will  not  undertake  to  bring  before  you  all  of  these  problems, 
these  should  and  I  am  sure  do  come  to  your  attention  through  the 
reports  of  your  secretary,  but  I  wish  to  say  that  in  connection  with 
the  work  of  the  secretary  at  Washington  that  it  is  not  always  what 
the  various  chapters  and  various  individuals  may  desire  to  obtain 
on  a  certain  line  of  legislation  that  can  be  gotten,  but  it  is  rather 
what  can  be  secured.  In  nearly  every  case  some  sort  of  compromise 
must  take  place  in  order  to  get  a  bill  through  Congress.  While  this 
is  in  some  cases  to  be  deplored,  yet  on  the  other  hand  it  is  some- 
times best  to  have  some  person  other  than  ourselves  to  come  into 
the  consideration  of  these  questions,  and  help  to  solve  them,  for  we 
all  know  by  personal  experience  that  at  times  our  own  judgment 
has  been  somewhat  fallacious  due  to  our  over-anxiety  to  have  cer- 
tain things  accomplished,  overlooking  points  that  would  be  well  to 
have  included  in  any  legislation  under  consideration. 

From  these  various  statements  you  will  at  once  recognize  that 
the  Mining  Congress  has  still  before  it  a  mission  that  no  other  or- 
ganization can  perform.  As  stated  before,  the  very  fact  of  the  or- 


144          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

ganization  itself  being  national  in  its  scope,  comprising  as  it  does 
in  its  membership  not  only  men  engaged  in  all  branches  of  mining, 
in  all  parts  of  the  American  Continent,  but  also  men  who  are 
consumers  of  the  products  of  these  mines,  making  its  members 
both  producers  and  consumers,  and  therefore  the  united  action  of 
the  Mining  Congress  of  much  more  value  as  a  public  guide  than 
it  would  otherwise  be  if  its  membership  was  confined  to  either  pro- 
ducers or  consumers  alone.  We  believe  that  any  careful  considera- 
tion of  the  work  that  is  to  be  accomplished  for  the  benefit  of  the 
mining  industry  can  be  best  carried  out  by  a  non-political,  non-sec- 
tional organization  such  as  The  American  Mining  Congress. 

I  would  in  conclusion  suggest  that  at  this  meeting  a  committee 
on  scope  and  financial  plans  for  the  future  work  of  The  American 
Mining  Congress  be  selected,  and  that  they  be  requested  if  possible 
to  outline  and  suggest  a  plan  to  this  session  of  the  congress  so  that 
the  future  efficiency  of  those  charged  with  the  work  of  the  con- 
gress shall  be  increased,  and  thus  the  future  status  of  The  Ameri- 
can Mining  Congress  be  strengthened  and  maintained. 


The  National  Forests  and  Development  of  Natural  Resources. 

HENRY  S.  GRAVES, 
U.  S.   FORESTER,  WASHINGTON,  D.  C. 


There  have  been  during  the  last  three  or  four  years  many  con- 
troversies over  different  phases  of  the  conservation  of  our  national 
resources.  Underlying  the  various  differences  of  opinion  there  is 
one  clearly  denned  issue  of  paramount  importance  and  that  is 
whether  the  natural  resources  now  owned  by  the  public  shall  be 
partitioned  out  among  private  individuals  and  corporations  or  cer- 
tain of  them  shall  be  retained  under  public  control  and  be  developed 
under  public  direction.  This  is  the  only  real  issue  about  which  there 
is  any  serious  controversy  and  it  is  one  which  must  be  definitely 
and  squarely  met  by  the  nation.  The  people  must  decide  whether 
they  will  surrender  jurisdiction  and  control  over  the  remaining 
public  lands,  the  great  open  stock  ranges,  the  national  forests,  the 
vast  deposits  of  phosphates,  oil,  and  coal,  and  the  water  power  sites 
still  owned  by  the  nation  as  a  whole.  Almost  all  are  in  agreement 
regarding  the  desirability  of  conserving  soil  fertility  and  increasing 
its  productiveness,  of  protecting  our  forests  from  fire,  saving  waste 
in  manufacturing  lumber  and  in  mining,  etc.  The  end  in  view  is 
pronounced  by  all  as  splendid.  Differences  of  opinion  arise  in  the 
application  of  the  principles  of  conservation  in  practice.  Yet  these 
differences  present  no  great  difficulties  until  the  question  arises  as 
to  the  relation  of  the  public  to  conservation  and  the  demands  which 
it  makes  for  its  own  protection. 

This  is  clearly  shown  in  the  history  of  forestry.  Practical  con- 
servation on  a  comprehensive  scale  was  first  put  into  effect  on  the 
National  Forests.  When  they  were  first  established  there  was  a 
storm  of  protest  because  it  was  believed  that  they  were  to  be  with- 
drawn from  development.  The  idea  of  development  of  forest  re- 
sources under  public  direction  was  new  and  not  understood.  After 
seven  years  erf  administration  a  great  measure  of  this  opposition 
has  disappeared  as  it  was  seen  that  the  resources  of  the  forests  were 
being  put  to  use  and  as  those  using  them  began  actually  to  feel  the 
benefits  of  the  protection  of  the  Government.  The  present  opposi- 


146          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

tion  to  national  forestry  comes  from  two  sources.  The  first  is  from 
local  difficulties  of  administration.  The  second  comes  from  those 
who  are  opposed  to  public  control  of  natural  resources  and  who 
wish  to  see  the  Forests  turned  over  to  private  owership.  Difficul- 
ties of  local  administration  are  very  rapidly  being  adjusted.  This 
is  a  question  of  cooperation  between  the  authorities  and  those  using 
the  resources  of  the  forests.  That  this  is  being  done  is  demon- 
strated by  the  tremendous  support  the  Forest  Service  is  getting  in 
its  fight  to  protect  the  forests  from  fire,  in  working  out  its  policy 
of  timber  sales,  in  the  use  of  the  forest  range,  etc. 

In  the  case  of  the  second  group  of  opponents  of  the  policy  of 
national  forestry  there  can  be  no  such  adjustment,  because  they 
fundamentally  are  opposed  to  public  control  of  natural  resources. 
Their  proposals  for  handling  the  national  resources  lead  in  practi- 
cally all  cases  to  the  breaking  down  of  public  control.  I  am  there- 
fore very  desirous  of  seeing  this  issue  brought  before  the  country 
and  settled  definitely. 

The  principle  underlying  our  earlier  land  laws  was  to  distribute 
the  public  lands  among  many  small  owners.  The  aim  was  to  get 
settlers  on  the  land  and  to  secure  cultivation  of  the  soil,  or  mining 
development  as  rapidly  as  possible.  So  far  as  agricultural  lands  are 
concerned,  the  wisdom  of  these  laws  has  been  clearly  demonstrated. 
In  the  case  of  mineral  lands  they  have  in  the  main  been  successful. 
But  they  were  not  applicable  to  mountainous  lands  adapted  only  to 
the  production  of  timber  and  control  of  water. 

Experience  has  shown  that  certain  resources,  particularly  tim- 
ber and  water  power,  cannot  be  developed  in  small  units,  on  which 
the  whole  theory  of  our  land  legislation  has  rested.  Our  laws  have 
resulted  in  the  rapid  acquisition  of  these  resources  in  the  hands  of  a 
comparatively  few  very  large  interests.  Not  only  does  such  very 
large  ownership  by  a  few  threaten  monopolies  injurious  to  the  public 
but,  in  the  case  of  our  mountain  forests,  it  threatens  the  rapid  ex- 
haustion of  timber  and  incalculable  injury  in  the  matter  of  water 
supply  as  well. 

Forests  serve  two  great  functions,  the  production  of  timber 
and  the  production  of  water  under  stable  and  uniform  conditions  of 
flow.  Timber  land  owners  do  not  ordinarily  acquire  land  to  grow 
trees  nor  to  secure  public  benefits  of  stable  water  supply.  When 
one  considers  that  it  takes  from  80  to  150  years,  with  most  of  our 
species,  to  produce  timber  suitable  for  the  saw,  it  is  obvious  that 
the  average  private  owner  is  not  attracted  to  tree  growing  as  an 
investment,  especially  in  face  of  the  fire  risk  and  the  present  system 


NATIONAL  FORESTS,  DEVELOPMENT  OF  RESOURCES.  147 

of  taxation.  It  is  here  that  the  forestry  problem  differs  from  agri- 
culture. In  agriculture  the  quickness  of  returns  offers  inducements 
for  good  methods  of  cultivation.  Even  exhausted  soil  can  be  re- 
stored with  comparative  quickness,  and  the  public  benefits  of  soil 
conservation  can  be  accomplished  under  private  ownership  in  small 
units,  with  such  public  aid  as  may  be  required  through  education, 
experimental  stations,  etc.  History  in  all  countries  has  shown 
that  the  forestry  problem  can  not  be  solved  by  the  private  owners 
on  their  own  initiative. 

The  establishment  of  the  National  Forests,  therefore,  recog- 
nized a  new  principle  of  land  administration,  namely,  that  there  are 
certain  classes  of  resources  which  should  be  retained  under  public 
control,  both  to  serve  their  highest  use  and  to  protect  the  interests 
of  the  public  from  actual  injury. 

The  charge  is  then  immediately  made  by  the  opponents  of  na- 
tional forestry  that  development  is  blocked  and  that  this  principle 
imposes  a  great  burden  on  the  present  for  the  benefit  of  unborn  gen- 
erations. This  charge  is  utterly  unwarranted  and  the  contrary  is 
proved  by  the  facts. 

Take  first  the  question  of  agriculture.  It  has  been  claimed  by 
many  that  there  are  many  millions  of  acres  of  agricultural  land  in 
the  National  Forests  which  the  present  administration  is  with- 
holding from  settlement  in  order  to  grow  trees  on  them.  What  are 
the  facts?  In  the  first  place  there  are  not,  as  claimed,  20  million 
acres  or  so  of  agricultural  lands  in  the  National  Forests  or  anything 
like  it.  There  are,  however,  in  the  forests  many  tracts  of  value  for 
agriculture,  chiefly  in  small  bodies  and  scattered  units,  which  on  all 
the  forests  together  aggregate  perhaps  3  or  4  million  acres.  These 
are  not  being  withheld  from  settlement  but  are  being  opened  up  as 
rapidly  as  is  possible.  The  Forest  Service  has  authority  to  classify 
the  agricultural  lands  and  list  them  for  entry  under  the  Forest 
Homestead  law  of  1906.  Already  about  one  and  one-half  million 
acres  have  been  segregated  as  agricultural  for  the  benefit  of  settlers. 
The  rest  is  being  classified  as  rapidly  as  is  possible.  When  they  are 
under  heavy  timber,  the  timber  is  offered  for  sale  and  the  land 
opened  up  after  lumbering.  Thus  in  one  forest  in  northern  Idaho 
sales  aggregating  500  million  feet  are  about  to  be  advertised  under 
conditions  which  will  clear  the  agricultural  lands  as  quickly  as  pos- 
sible. The  same  policy  is  being  carried  out  elsewhere.  Heavily 
timbered  lands  are  not  opened  to  entry  before  cutting,  because  set- 
tlement would  not  follow,  as  has  been  demonstrated  over  and  over 
again.  The  entryman  acquires  the  land  and  he  then  usually  sells  out 


148          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

to  a  timber  company,  which  holds  the  timber  until  it  gets  ready  to 
cut,  and  then  sells  the  land  to  settlers  for  10  to  75  dollars  per  acre. 
The  seeker  after  cheap  land  is  absolutely  excluded.  The  Forest 
Service  cuts  the  timber,  and  then  gives  the  land  to  the  settler.  This 
process  is  shown  in  many  forests  where  Government  agricultural 
land  is  rapidly  passing  into  the  hands  of  bona  fide  homeseekers  while 
interior  holdings  of  timberland  owners,  originally  taken  up  as  home- 
steads, remain  undeveloped  and  will  finally  not  be  available  except 
at  a  high  price.  One  of  the  reasons  why  people  have  been  deceived 
as  to  this  question  is  because  in  traveling  through  the  forests  they 
have  no  means  of  distinguishing  interior  private  holdings  from  Gov- 
ernment land.  As  a  matter  of  fact  the  best  land  was  usually  se- 
lected by  the  timberman  because  the  rich  flat  bottoms,  and  benches 
are  those  which  carried  the  best  timber.  Here  is  a  clear  case  where 
private  ownership  is  blocking  development,  and  the  National  Forests 
are  securing  it.  This  is  the  reason  why  the  residents  of  the  Koote- 
nai  Valley  in  Montana  have  petitioned  against  any  elimination  of  the 
timbered  bottoms  because  they  know  that  an  elimination  would  lead 
to  the  acquisition  of  the  land  by  the  timberman,  with  the  consequent 
impossibility  of  the  settlers  getting  the  land  in  a  reasonable  time  or 
under  the  homestead  law. 

A  further  charge  is  made  that  the  National  Forests  are  block- 
ing mining  development.  Statements  have  been  made  in  this  matter 
which  are  as  far  from  the  facts  as  those  regarding  agriculture.  It 
was  recognized  that  acquisition  of  mineral  lands  for  private  devel- 
opment should  be  continued  on  the  National  Forests  as  on  unre- 
served public  lands.  Therefore,  the  general  mining  laws  were  made 
applicable  to  the  forests.  The  statement  that  the  prospector  is  in- 
terfered with  is  not  true.  He  is  absolutely  free  to  prospect  where 
he  will  in  the  National  Forests.  Absolutely  the  only  restriction  that 
is  placed  on  him  is  that  he  shall  be  careful  of  fire.  Most  prospectors 
are  seasoned  mountaineers  and  know  well  how  to  leave  their  camp 
fires.  But  unfortunately  all  are  not  so  careful,  nor  do  all  of  them 
appreciate  the  damage  to  forests  from  a  surface  fire  which  destroys 
all  the  small  trees  which  we  are  protecting  to  constitute  the  new  crop 
of  timber.  I  have  repeatedly  asked  for  specific  cases  where  it  was 
claimed  prospectors  were  interfered  with.  Usually  the  statements 
have  been  general,  and  those  making  them  could  not  tell  me  of  any 
specific  instances.  In  the  instances  where  I  have  had  definite  cases 
given  me,  I  have  found  either  that  a  prospector  has  taken  offense 
because  a  ranger  cautioned  him  to  be  careful  of  fire,  or  it  was  a  case 
five  or  six  years  ago  when  the  Service  was  first  being  organized  and 


NATIONAL  FORESTS,  DEVELOPMENT  OF  RESOURCES.  149 

the  personnel  was  not  as  efficient  or  did  not  understand  our  instruc- 
tions as  well  as  now. 

Another  charge  is  that  when  a  mineral  claim  comes  up  for  final 
proof  the  Forest  Service  needlessly  and  with  inadequate  information 
protests  it  to  the  Land  Office,  often  holding  up  patent  without  cause. 
My  answer  to  this  is  that  no  report  ever  goes  to  the  Land  Office  ex- 
cept from  a  qualified  mining  expert,  the  best  I  can  secure  under  the 
law.  This  is  work  which  is  done  for  the  Land  Office.  The  interests 
of  the  Forest  Service  in  this  matter  are  identical  with  the  interests 
of  the  public  and  of  the  mining  industry  itself.  If  a  man  has  a  mine 
and  has  complied  with  the  law,  he  should  be  given  the  land  with 
the  least  possible  delay  and  trouble.  If  he  has  not  a  mine  as  defined 
by  the  law  or  has  not  complied  with  the  conditions  laid  down  by  the 
law,  the  land  should  not  pass  from  Government  ownership. 

Many  of  these  interested  in  mining  have  insisted  that  when 
claims  come  to  patent  the  officers  of  the  Government  should  not 
make  any  field  examination  to  determine  whether  the  law  has  been 
complied  with.  It  would  seem  hardly  necessary  for  me  to  call  at- 
tention to  the  reason  why  such  examinations  are  necessary.  The 
fact  is  that  over  and  over  again  the  liberal  mining  laws  have  been 
fraudulently  used  to  secure  title  to  land  desired  for  other  purposes 
than  mining.  I  have  taken  occasion  during  my  incumbency  in  office 
to  look  up  this  very  question  and  have  been  amazed  by  what  I  have 
learned.  I  have  specific  instances  where  the  mining  law  was  fraud- 
ulently used  to  secure  very  heavy  timber  for  speculative  purposes, 
to  secure  sites  for  water  power  development,  to  secure  water  holes 
to  give  control  of  extensive  stock  range,  to  secure  control  of  valuable 
areas  for  summer  resort  development,  to  secure  areas  controlling 
valuable  rights  of  way  for  speculation,  and  various  other  purposes. 
Can  anyone  go  before  the  country  in  the  name  of  the  mining  indus- 
try and  ask  that  the  Government  be  prohibited  from  undertaking  to 
prevent  such  frauds?  Does  anyone  who  has  the  real  interests  of 
the  industry  at  heart  acknowledge  that  the  enforcement  of  the  min- 
ing laws  is  not  the  very  thing  which  will  protect  it  from  the  blight 
of  the  wild-cat  promoter  who  has  already  often  enough  brought 
discredit  upon  it  ?  Let  me  cite  the  opinion  of  the  local  county  mining 
congress  which  met  at  Yreka,  California.  One  of  its  resolutions 
urges  as  follows: 

"BE  IT  RESOLVED,  that  it  is  the  sense  of  this  Congress  that 
the  Natioanl  Forest  policy  and  service  has  proved  an  efficient  agency, 
not  only  in  preserving  for  the  prospector  the  undiscovered  mineral 
deposits  in  the  district,  by  preventing  their  acquisition  through  non- 


150          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

mineral  entries,  but  in  facilitating  their  location,  enjoyment  and  pat- 
enting by  good  faith  mineral  claimants  in  accordance  with  laws 
passed  in  the  interest  of  miners. 

"Be  it  further  resolved,  that  it  is  the  sense  of  this  Congress 
that  the  Forest  Service  employes  in  the  field  should  be  authorized  to 
investigate  in  connection  with  the  miners  the  lands  covered  by  rail- 
road grants  and  other  non-mineral  patents  in  the  mineral  belt,  pre- 
paratory to  Government  action  in  having  such  lands  as  are  min- 
eral exempted  and  segregated  from  lands  properly  held  under  such 
grants  as  non-mineral  patents." 

I  wish  also  to  call  attention  to  the  timber  problem  of  the  mining 
industry.  This  has  been  a  question  of  more  or  less  discussion  and 
some  complaints  have  been  made  relative  to  the  policy  of  the  Forest 
Service.  The  mining  law  is  very  specific  in  its  provisions  regarding 
the  timber  on  a  mining  claim.  The  law  permits  the  use  of  the  timber 
on  a  claim  for  purposes  connected  with  the  development  of  the  mine. 
It  does  not  permit  the  locater  to  sell  it,  or  to  use  it  for  purposes  for- 
eign to  the  development  of  the  mine.  The  purpose  of  this  law  is 
perfectly  obvious,  namely,  to  prevent  the  acquisition  of  timber  for 
commercial  purposes  under  the  guise  of  the  mineral  law.  The  pro- 
visions of  the  law  are  not  only  in  the  interests  of  the  public  in  pre- 
venting fraud,  but  the  industry  itself  is  protected  by  it.  The  acquisi- 
tion of  timber  through  fraudulent  mineral  entries  and  the  stripping 
of  mining  claims  for  alleged  mining  development,  though  really  for 
commercial  lumbering,  would  often  seriously  reduce  the  supply  at 
the  points  most  needed  by  the  bona  fide  miners  of  the  region.  One 
fact  often  not  appreciated  is  that  prospecting  and  mining  is  in  many 
places  absolutely  precluded  by  private  ownership  of  large  areas  of 
lands  in  mineral  districts.  This  land  has  been  acquired  through  the 
various  public  land  laws,  and  through  private  ownership  withdrawn 
from  mineral  development.  Thus  a  case  recently  came  to  my  atten- 
tion in  a  Colorado  National  Forest  where  prospectors  complained 
bitterly  that  large  private  interests  had  secured  not  only  all  the 
nearby  timberland  in  a  certain  locality,  but  their  ownership  prac- 
tically stopped  prospecting.  Here  is  a  clear  illustration  of  how  the 
passing  of  public  into  private  ownership  effectively  acts  to  check 
mining  development. 

The  law  must  be  recognized  as  a  beneficial  and  a  necessary  one. 
Its  enforcement  by  the  Government  is  a  real  protection  to  the  best 
interests  of  the  industry.  In  the  National  Forests  the  miner  or 
prospector  has  the  full  right  to  the  timber  on  his  claim  for  the  pur- 
poses named  in  the  law.  If  he  needs  more  he  can  get  it  without 


NATIONAL  FORESTS,  DEVELOPMENT  OF  RESOURCES.  151 

charge  through  the  liberal  free-use  policy  of  the  Service.  This  pol- 
icy of  free-use  is  applied  with  great  liberality  to  prospectors.  Thus 
it  is  well  understood  that  in  case  of  need  for  timber  off  the  claim, 
which  cannot  be  foreseen,  a  permit  is  not  required,  but  the  pros- 
pector is  allowed  to  cut  and  use  such  timber  as  he  needs,  with  the 
understanding  that  he  will  later  on  notify  the  ranger  regarding  the 
amount  taken  and  its  location.  Where  his  mine  has  become  a  pro- 
ductive one,  and  further  timber  is  needed,  it  may  be  secured  at  rea- 
sonable prices.  In  other  words,  the  Government  gives  him  timber 
and  all  he  needs  until  his  mine  begins  to  yield  ore  for  the  market. 
Can  this  be  considered  an  unreasonable  policy  ? 

Furthermore,  the  Government  by  its  system  of  forestry  guaran- 
tees a  perpetual  local  supply  of  timber  for  such  miners.  In  common 
with  other  local  industries,  they  are  considered  first  in  any  plans  of 
sale  of  National  Forest  timber.  Sales  for  outside  consumers  are 
made  only  when  there  is  clearly  more  timber  being  produced  on  the 
forest  than  local  miners  and  other  nearby  industries  need.  In  a  num- 
ber of  specific  instances,  notably  in  the  National  Forests  of  central 
Montana,  all  the  timber  on  very  large  areas  will  be  required  for  local 
mining  industries.  Outside  sales  are  not  made  but  the  timber  is 
reserved  for  their  use,  and  provision  made  for  its  continued  produc- 
tion to  sustain  a  constant  supply.  Mining  communities  have  them- 
selves asked  for  this  protection,  and  have  protested  when  outsiders 
desiring  to  get  control  of  the  lands  have  tried  to  secure  eliminations 
of  the  areas  from  the  forest.  Here  again  I  feel  that  we  may  justly 
ask  the  support  of  the  mining  industry  against  the  efforts  to  break 
down  a  system  which  is  working  to  provide  one  of  its  greatest  needs. 
Does  anyone  really  believe  that  by  destroying  National  Forestry 
the  timber  needs  of  the  mining  industry  are  going  to  be  adequately 
met?  I  want  to  see  the  same  kind  of  co-operation  between  the  min- 
ing industry  and  the  Forest  Service  as  we  have  with  the  local  sheep 
and  cattle  associations  and  the  users  of  timber.  All  local  difficul- 
ties are  disappearing  through  co-operation.  Why  cannot  we  have 
the  same  results  in  the  mining  questions  through  meeting  together 
in  special  conferences  to  discuss  difficulties  which  so  often  arise 
from  a  misunderstanding  of  the  aims  of  the  Service?  When  the 
prospector  and  miner  understand  what  we  are  doing  co-operation 
will  replace  distrust. 

If  time  permitted  I  could  go  on  through  the  category  of  re- 
sources in  the  National  Forests  and  show  that  development  is  not 
being  blocked  but  is  being  promoted  in  a  way  that  will  result  in 
permanence  and  stability  of  industry.  As  soon  as  there  is  a  market 


152          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

for  the  large  bodies  of  timber  which  are  now  inaccessible,  there 
can  be  cut  every  year  from  the  National  Forests  over  six  billion 
feet  without  exceeding  the  annual  production  of  growth.  In  other 
words  through  the  system  of  public  control  there  will  be  at  least 
this  yield  sustained  every  year  indefinitely  and  it  will  be  increased 
as  we  restock  those  areas  on  which  the  forest  has  been  destroyed 
by  fire.  Under  the  present  law  35  per  cent  of  the  gross  receipts 
go  to  the  states.  That  is,  there  will  be  at  least  five  or  six  million 
dollars  of  direct  return  from  timber  alone  and  this  a  rapidly  in- 
creasing amount  as  the  value  of  timber  increases.  This  also  means 
the  distribution  permanently  of  60  to  80  million  dollars  a  year  in 
wages  through  the  permanent  support  of  the  local  lumber  indus- 
tries. This,  together  with  the  protection  of  the  sources  of  water, 
is  a  result  utterly  impossible  under  private  ownership. 

There  has  recently  been  considerable  agitation  to  turn  the 
National  Forests  over  to  the  states.  So  far  as  I  have  been  able 
to  learn,  the  advocates  of  this  proposition  do  not  have  in  mind  a 
continuance  of  public  control,  but,  after  the  states  have  acquired 
their  forests,  their  distribution  to  private  ownership.  In  most  cases 
this  is  the  declared  purpose  and  the  same  forces  which  have  been 
endeavoring  to  break  public  control  of  the  National  Forests  are 
now  turning  to  the  states'  rights  proposition  to  bring  about  the 
same  end.  In  other  cases  where  this  is  not  the  avowed  object,  the 
program  suggested  leads  definitely  to  the  same  result,  or  at  least 
prevents  the  public  benefits  which  can  be  secured  only  through  fed- 
eral ownership.  The  states'  rights  program  so  far  as  it  has  been 
developed  leads  to  the  same  end  as  the  private  ownership  program. 
Nevertheless  there  are  doubtless  some  who  are  thinking  of  state 
jurisdiction  to  replace  federal  jurisdiction  and  a  retention  of  pub- 
lic control.  To  meet  this  suggestion  I  wish  to  enumerate  briefly 
a  few  of  the  reasons  why  it  cannot  be  carried  through : 

1.  The  National  Forests  belong  to  the  whole  nation.    Just  as 
in  the  case  of  previous  grants  this  public  property  should  not  be 
transferred  to  the  states  unless  the  national  interests  can  be  better 
served  by  state  than  national  jurisdiction. 

2.  National  interests  require  that  the  lands  now  owned  by  the 
Government  and  suited  only  for  timber  production  be  made  to  yield 
as  much  as  possible  to  supply  as  far  as  they  will  forest  products  to 
the  people  of  the  whole  country. 

3.  Most  of  the  area  of  the  National  Forests  lies  on  the  water- 
sheds of  navigable  or  interstate  streams.    The  Government  is  now 
spending  eleven  million  dollars  to  buy  from  private  owners  forest 


NATIONAL  FORESTS,  DEVELOPMENT  OF  RESOURCES.  153 

lands  in  the  eastern  mountains  to  protect  navigable  streams.  While 
the  protection  of  navigation  was  legally  the  basis  of  this  appropria- 
tion, the  real  force  behind  the  measure  was  the  demand  for  forest 
protection  to  control  interstate  streams  and  to  maintain  the  sup- 
ply of  timber.  It  was  recognized  that  private  ownership  was  re- 
sulting in  grave  public  injury  in  both  these  regards. 

4.  The  states  are  unable  to  meet  the  public  requirements  of 
administering  the  National  Forests.     Merely  from  the  standpoint 
of  paying  the  bills,  it  would  be  out  of  the  question.     Most  of  the 
National  Forests  are  still  undeveloped  wilderness.     They  must  be 
opened  up  at  once  by  means  of  transportation  and  communication, 
merely  for  their  adequate  protection  from  fire.    Although  the  Gov- 
ernment has  already  built   10,000  miles  of  trails,  7,000  miles  of 
telephone  lines  and  many   other  permanent   improvements,  there 
remain  to  be  built,  in  order  to  complete  the  primary  skeleton  sys- 
tem of  fire  control,  over  85,000  miles  of  trail  and  40,000  miles  of 
telephone  lines.     The  first  cost  of  these  various  improvements  still 
to  be  constructed  will  amount  to  about  eight  million  dollars.    The 
cost  of  proper  protection  and  administration  is  beyond  the  states. 
The  total  cost  would  be  enormously  increased  if  there  were  estab- 
lished over  twenty  administrative  units.     If  the  states  handled  the 
forests  properly  in  the  interests  of  the  public,  their  administration 
would  be  essentially  the  same  as  that  of  the  Government.     Much 
of  the  timber  is  remote  and  not  merchantable  at  present,  the  more 
accessible  timber  having  been  acquired  by  private  owners.     The 
cost  of  protection  and  administration  would  exceed  receipts.     In 
case  of  great  droughts,  the  states  could  not  meet  the  emergency. 
This  is  clear  when  it  is  remembered  that  it  took  over  a  million 
dollars  of  emergency  expenditures  to  put  out  the  fires  of  1910  on 
the  National  Forests. 

The  states  are  not  now,  on  account  of  the  cost,  meeting  their 
responsibilities  in  forestry,  which  are  peculiarly  state  functions. 
The  Government  is  giving  direct  aid  now  in  cash  contributions  to 
the  states  of  Idaho,  Washington,  Oregon,  Montana  and  Minne- 
sota for  protection  from  fire  of  forest  lands  not  in  Government 
ownership  on  the  watersheds  of  navigable  streams.  This  is  in 
addition  to  eight  other  states  which  do  not  contain  National  Forests. 
To  the  first  list  should  properly  be  added  California,  which  has 
applied  for  federal  aid  but  has  not  yet  qualified  for  it  under  the 
law  by  establishing  a  state  system  of  fire  protection. 

5.  The  success  of  developing  and  administering  public  forests 
depends  absolutely  in  having  stable  policies  and  methods  of  work. 


154          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

The  length  of  time  required  for  tree  growth  means  that  every  op- 
eration affects  the  later  development.  It  therefore  requires  a  long 
look  ahead  and  the  inauguration  of  plans  of  work  which  will  be 
carried  out  over  long  periods.  Sudden  shift  or  changes  in  policy 
or  methods  of  administration  would  be  fatal  to  successful  accom- 
plishment of  the  desired  ends  of  forestry.  In  the  same  way  it  is 
absolutely  essential  that  the  administration  be  free  from  all  political 
considerations  and  from  the  influence  of  powerful  private  interests. 
All  these  things  can  be  furnished  by  the  Federal  Government  as 
the  states  cannot.  In  the  administration  of  the  National  Forests 
a  definite  policy  has  been  put  into  effect  and  is  known.  The  Gov- 
ernment is  committed  to  its  continuance.  Transfer  these  forests 
to  the  states  and  twenty  separate  and  distinct  policies  must  be  de- 
veloped and  tried  out  before  the  public  will  know  where  it  stands. 

While  the  National  Forests  are  retained  by  the  Federal  Gov- 
ernment to  accomplish  certain  great  national  purposes,  the  imme- 
diate benefit  will  inevitably  and  should  be  to  the  states  and  com- 
munities in  which  they  are  situated.  The  object  is  not  to  swell  the 
national  treasury;  it  is  to  secure  the  continued  production  of  tim- 
ber, the  protection  of  water,  and  the  protection  of  the  public  from 
monopoly.  The  financial  returns  are  to  cover  the  cost  of  protec- 
tion, improvement  and  administration.  Any  surplus  which  ulti- 
mately is  secured,  and  it  will  in  time  be  very  large,  should  be  de- 
voted primarily  to  development  and  improvement  work  in  the  for- 
ests for  the  benefit  of  the  people. 

It  is  only  through  the  Federal  Government  with  its  unlimited 
resources  and  its  stable  policies  representing  the  needs  of  the  whole 
nation  that  the  best  development  of  the  forests  both  from  the 
standpoint  of  the  nation,  the  states  and  local  communities  can  be 
successfully  accomplished. 


The  Protection  of  Investors  in  Mining  Stocks. 

W.  H.  STORMS, 
STATE  MINERALOGIST  OF  CALIFORNIA. 


The  spectacular  successes  that  sometimes  result  from  mining 
operations  have  acted  as  a  powerful  incentive  for  a  certain  class 
of  individuals  who  style  themselves  promoters,  and  sometimes  as 
mining  engineers,  to  undertake  to  foist  upon  the  public  mining 
schemes  that  will  not  bear  the  test  of  close  inspection.  All  mining 
men  are  familiar  with  the  type  of  promoter  here  referred  to,  and 
it  seems  almost  needless  to  describe  the  character  of  these  get-rich- 
quick  propositions.  Some  of  them  are  most  ingenious  in  their 
presentation,  others  are  crass,  raw,  and  entirely  overdone,  so  much 
so  that  there  is  not  the  least  danger  of  those  who  have  any  knowl- 
edge whatever  of  mining  affairs  being  deceived.  The  public  gen- 
erally, however,  does  not  possess  the  necessary  experience  or 
knowledge  to  guard  against  these  impositions  and  as  a  class  are 
readily  taken  in  by  the  highly  colored  statements  found  in  the  al- 
luring promotion  literature  of  the  kind  here  referred  to.  Always 
the  statements  found  in  the  prospectus  indicates  the  property  to  be 
of  phenomenal  value — such,  in  fact,  that  were  the  statements  really 
true,  it  is  extremely  doubtful  if  the  outsider  could  secure  a  single 
share  of  stock  except  at  a  price  that  would  make  it  unwise  to  in- 
vest in  even  this  meritorious  property. 

I  call  to  mind  one  concern  in  California,  which  a  few  years 
ago  issued  a  lot  of  lurid  literature,  gorgeous  and  expensive,  in 
which  it  was  stated  that  the  company  had  extensively  developed  to 
considerable  depth  a  vein  twelve  feet  wide,  which  was  worth  two 
hundred  dollars  a  ton  in  gold.  Every  mining  man  knows  that  the 
owners  of  such  a  property  require  only  sufficient  money — a  few 
hundred  dollars  at  most — to  mine,  sack,  and  ship  to  a  custom  re- 
duction works  the  first  car  of  ore,  and  after  that  all  is  easy,  as  no 
further  capital  is  required  other  than  that  produced  by  the  mine 
itself.  In  this  particular  instance  the  promoters  not  only  suc- 
ceeded in  inducing  many  people  to  invest  cash  in  their  enterprise, 
but  they  actually  spent  some  of  the  money  in  the  purchase  and 
construction  of  a  mill  and  expensive  pipe-line.  This  concern  failed, 
for  their  only  asset  was  a  vein  of  quartz  which  was,  as  the  pros- 
pectus stated,  twelve  feet  wide,  but  it  was  deficient  in  gold.  Instead 


156          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

of  two  hundred  dollars  per  ton  it  was  nearer  two  dollars,  and  I 
am  not  at  all  sure  that  it  was  even  that  good.  It  was,  no  doubt, 
the  easy  success  of  the  promoters  of  this  scheme — that  is,  success 
for  the  promoters,  not  the  investors — that  induced  another  lot  of 
fellows  to  organize  companies  on  both  extensions  of  this  fraud, 
and  to  emulate  the  example  of  the  first  company  in  the  character 
of  their  literature,  which  appeared  in  gilt  and  colors,  with  a  lying 
statement  about  the  property  and  pictures  of  the  shameless  pro- 
moters themselves,  showing  them  at  the  mine  wearing  broad- 
brimmed  sombreros,  high  laced  boots,  and  flannel  shirts,  and  armed 
with  brightly  glistening  store  picks.  It  is  a  matter  of  regret  that 
these,  too,  succeeded  fairly  well  in  disposing  of  shares  to  the  easily 
gullible  public.  These  three  companies  have  been  chosen  as  a  fair 
sample  of  promotions  of  the  fake  class. 

As  I  have  already  said,  mining  people  of  experience  need  little 
protection,  either  legally  or  otherwise,  from  promoters  of  this  class, 
but  unfortunately  the  public  generally  have  little  real  knowledge 
of  mining,  and  are  therefore  most  easily  imposed  upon.  Very 
naturally  they  believe  that  the  stocks  offered  by  the  promoter  must 
have  some  value,  for  they  cannot  bring  themselves  to  believe  that 
any  set  of  men  would  so  brazenly  dare  to  falsify  the  true  condition 
of  any  property.  Being  honest  themselves,  they  consider  the  seri- 
ous consequences  of  such  illegal  acts.  We  all  know  to  the  contrary. 
Men  of  the  stamp  here  referred  to  will  dare  almost  anything  when 
there  is  easy  money  in  sight.  They  look  upon  the  public  as  their 
legitimate  prey.  It  is  true  that  the  laws,  both  State  and  Federal, 
distinctly  forbid  the  misrepresentation  of  mining  property,  but  the 
law,  and  that  referring  to  this  matter  particularly,  has  little  terror 
for  men  of  this  stamp.  These  dishonest  schemers  have  learned  by 
experience  that  the  public  is  easily  deceived,  and  that  it  is  not 
difficult  to  excite  the  cupidity  of  the  average  person,  particularly 
with  tales  of  rich  gold  ore.  These  human  weaknesses  are  taken 
advantage  of  and  we  are  all  familiar  with  the  unfortunate  result. 
You  would  be  surprised  to  know  the  number  of  inquiries  that  are 
made  to  the  State  Mining  Bureau  of  California  for  some  informa- 
tion concerning  this  or  that  stock.  The  company  is  not  always 
a  California  concern,  but  are  in  other  Western  states.  It  is  not 
strange,  perhaps,  that  the  greater  number  of  these  inquirers  are 
women.  It  is  rare  indeed  that  I  am  able  to  hold  out  any  hope  to 
these  dupes  of  the  get-rich-quick  promoter.  This  includes  "process" 
propositions  as  well  as  mining  companies,  for  the  process  man  has 
been  unusually  active  of  late.  Unquestionably  something  should 


PROTECTION  OF  INVESTORS  IN  MINING  STOCKS.      157 

be  done  to  put  a  stop  to  the  dishonest  schemes  of  men  of  the  fake 
promoter  class.  I  am  firmly  of  the  opinion  that  the  vigorous  prose- 
cution and  suppression  of  dishonest  mining  promotions  do  not  hurt, 
or  in  any  manner  injure  or  react  disastrously  upon  the  industry  of 
legitimate  mining.  It  is  clearly  evident  that  the  public  is  not  suffi- 
ciently protected  against  the  schemes  of  these  foes  of  the  legitimate 
industry — the  fake  promoters.  At  least,  this  is  the  case  in  Cali- 
fornia, for  notwithstanding  the  existing  State  and  Federal  laws 
which  plainly  define  such  practices  as  illegal;  and  apparently  un- 
mindful of  the  activities  of  the  postal  department  in  prosecuting 
some  of  the  most  flagrant  cases,  the  fraudulent  promoter  continues 
in  business  and  evidently  thrives. 

That  further  and  more  drastic  legislation  is  necessary  is  clearly 
apparent  to  all  of  the  real  friends  of  legitimate  mining.  In  looking 
over  the  laws  of  the  various  states,  the  object  of  which  is  to  afford 
protection  to  investors  against  dishonest  promotions,  the  only  one 
that  in  any  way  appears  adequate  to  meet  he  exigencies  of  the  case 
is  that  of  the  state  of  Kansas,  and  now  famous  as  the  "Blue-Sky" 
law.  This  particular  piece  of  excellent  legislation  was  enacted  by 
the  Kansas  Legislature  at  its  session  of  1911,  and  is  known  as 
House  Bill  No.  906.  It  is  entitled,  "An  act  to  provide  for  the  reg- 
ulation and  supervision  of  investment  companies  and  providing 
penalties  for  the  violation  thereof."  Its  provisions  are  simple, 
plain  and  direct.  It  provides  that  all  companies,  associations,  cor- 
porations, etc.,  with  the  few  exceptions  of  concerns  not  organized 
for  profit,  before  attempting  to  offer  or  sell  any  stocks,  bonds, 
or  other  securitites  of  any  kind  other  than  those  exempted,  shall 
file  in  the  office  of  the  Bank  Commissioner  of  the  State  of  Kansas 
a  statement  showing  in  full  detail  the  plan  upon  which  it  proposes 
to  transact  business.  It  must  state  the  name  and  location  of  the 
company,  and  also  an  itemized  account  of  its  actual  financial  condi- 
tion, and  the  amount  of  its  property  and  liabilities,  and  such  other 
information  concerning  its  affairs  as  the  Bank  Commissioner  may 
require.  It  is  the  duty  of  the  Bank  Commissioner  to  then  investi- 
gate the  affairs  of  the  company  making  application  for  the  privil- 
ege of  doing  business  in  the  state  of  Kansas,  when,  if  in  the  opinion 
of  the  commissioner,  the  proposed  plan  of  the  applicant  is  in  any 
manner  unfair  or  dishonest,  he  shall  refuse  to  grant  the  permission 
sought. 

The  effect  of  this  law  is  drastic,  but  in  no  wise  too  much  so 
for  some  of  the  promoters  I  have  known.  It  is  a  necessary  law, 
and,  as  far  as  I  have  been  able  to  ascertain,  it  has  worked  no 


158          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

injustice  to  any  company  organized  along  honest  lines,  and  which 
has  been  promoted  in  a  decent  and  proper  manner.  It  is  an  inter- 
esting fact  that  during  the  first  year  of  its  operation  in  Kansas 
only  about  six  per  cent  of  the  applications  made  were  granted 
by  the  Bank  Commissioner.  They  must  have  been  pretty  thick 
in  Kansas.  It  is  estimated  that  this  law  saves  from  $5,000,000  to 
$6,000,000  to  the  people  of  that  state  each  year.  In  my  opinion 
the  "Blue-Sky"  law  is  all  right,  we  need  it  in  California,  and  it 
is  my  hope  that  the  next  California  Legislature  will  pass  a  bill  as 
nearly  like  the  Kansas  law  as  possible.  It  would  place  mining  on 
a  higher  plane  and  no  legitimate  undertaking  would  be  injured 
by  having  such  a  law  on  the  statute  books  of  the  state.  The  natural 
operation  of  a  law  of  this  character  when  strictly  enforced  would 
be  to  limit  in  a  very  noticeable  degree  the  number  of  promotions 
attempted,  and  without  doubt  it  would  act  as  a  decided  deterrent 
to  dishonest  mining  promotions.  There  are  those  who,  no  doub't, 
will  argue  that  mining  is  a  gamble,  anyway,  so  why  may  not  one 
of  these  propositions  of  dubious  reputation,  to  say  no  worse, 
prove  to  be  an  unexpected  success?  It  would  be  unexpected.  I 
have  never  known  of  one,  which  started  as  a  fake,  did  not  continue 
as  such  to  the  end,  and  I  never  expect  to  see  one.  Moreover, 
any  scheme  promoted  in  the  interest  of  the  promoters  only,  should 
it  ever  by  any  chance  prove  to  be  a  commercial  success,  the  pro- 
moters would  see  to  it  that  the  outside  stockholder  would  reap 
no  benefit  from  it.  It  would  be  considered  by  the  promoter  to  be 
a  "business  opportunity"  too  good  to  be  overlooked,  and  he  would 
proceed  to  take  advantage  of  it  to  the  limit  of  his  pernicious  ability. 


The    Relative    Hazard   of   All   Vocations   in   Comparison    with 

Mining. 

HYWEL  DAVIES, 
LOUISVILLE,    KY. 


No  industry,  outside  the  milling,  clothing  and  shoe  industry, 
affects  the  welfare  and  comfort  of  the  inhabitants  of  the  Temperate 
Zones  more  than  the  coal  mining  industry. 

It  is  not  only  indispensable  in  most  lines  of  manufacture  and 
in  the  generation  of  steam,  but  also  in  all  the  homes  of  the  poor, 
as  well  as  the  rich.  Its  use  is  not  privileged  in  any  sense  and  it 
is  sold  in  quantities  to  suit  the  consumer.  No  other  product  has 
such  elasticity  in  its  sales.  It  is  doled  out  from  a  nickel's  worth 
to  a  car  load  to  the  domestic  consumer;  from  a  wagon  load  to 
hundreds  and  even  thousands  of  cars  to  the  manufacturer;  while 
all  the  larger  railroad  lines  buy  millions  of  tons  annually. 

Not  by  any  means  is  it  the  most  dangerous  of  vocations,  yet 
the  story  of  coal  production  is  filled  with  such  tragical  and  dra- 
matical incidents  as  to  rouse  and  focus  the  attention  of  the  entire 
civilized  world  that  otherwise  trends  its  way  in  indifference  as 
to  the  source  of  comforts,  or  the  prominent  factor  that  coal  par- 
takes in  the  making  of  its  general  welfare. 

Human  nature  is  the  same  the  world  over.  The  cannibal 
forgets  any  qualms  he  may  have  when  witnessing  the  butchery 
of  his  victims  in  the  feast  that  follows.  We  forget  the  tragedies 
of  the  sea  when  enjoying  our  sea-food,  or  the  dainties  from  over 
the  sea.  The  billiard  player  gives  no  thought  to  the  horrors  of  the 
Congo  and  Equatorial  Africa  when  indulging  in  his  favorite  game. 
The  seal  and  fur  dressed  rich  seldom  worry  over  the  story  of 
exposure  and  death  of  many  a  fisherman  and  trapper  in  the  Far 
North,  made  necessary  to  satisfy  the  mandates  of  fashion  and 
wealth.  Nor  do  the  poor  more  than  seldom  think  of  the  tragedies 
of  the  sweat-shop  in  their  unconscious  wear  of  the  products  of 
the  same.  We  may  even  say  that  in  the  enjoyment  of  our  priceless 
liberties  and  democratic  privileges  we  rarely  give  a  thought  to 
the  tremendous  sacrifices  of  our  forefathers  which  purchased  them. 

So,  no  matter  which  way  we  turn  we  find  that  the  story  of 
civilization  and  that  of  the  human  race  in  general  is  written  in 


160          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

pain,  torture,  sacrifice,  and  every  conceivable  horror  saturated  in 
blood,  in  the  struggle,  not  only  of  existence,  but  also  in  the  civilizing 
efforts  which  make  for  the  uplift  of  the  human  race  to  greater 
ideals  and  their  concurrent  fads  and  fancies  of  comfort. 

The  toll  of  crippled  bodies,  shattered  health  and  lives  in  the 
various  industries,  and  even  while  enjoying  the  civilized  comforts, 
exacted  and  paid  annually,  is  startling  when  marshaled  in  sta- 
tistical array.  Though  it  is  our  innocent  boast  that  the  victories  of 
peace  are  greater  than  those  of  war,  yet  here  we  are  confronted 
with  the  fact  that  the  disasters  of  peace  are  also  greater  than  those 
of  war — the  only  difference  being  that  the  mowing  down  in  peace 
is  generally  on  a  retail  basis,  and  in  war  on  a  wholesale  basis. 

These  penalties  of  progress  are  caused  by  man's  limitations 
in  every  way,  and  emphasize  the  dearness  of  the  school  of  experi- 
ence, due  to  the  retarding  influences  of  our  ignorance,  lack  of  fore- 
sight, and  the  proper  conception  and  attention  to  the  fundamentals 
of  safety  and  protection  to  ourselves  and  fellow  man. 

We  take  too  many  things  for  granted,  too  many  risks;  hope 
too  much  for  the  best  and  prepare  too  little  for  the  worst.  In 
other  words,  we  are  too  prone  to  fatalism  and  pay  too  little  atten- 
tion to  "cause"  until  we  have  paid  the  penalty  of  "effect." 

So  in  peaceful  pursuits  we  reason  backwards,  because  we 
are  so  "finite,"  even  though  in  the  evolution  of  civilization  we 
are  able  to  make  many  a  milestone  on  the  road  towards  the  goal 
of  perfection  of  human  omnisciency  in  material  things.  This 
perfection,  or  omnisciency  of  knowledge  of  terrestrial  things,  will 
be  hastened  if  concurrently  the  divine  within  us  will  also  be  de- 
veloped, because  the  perfection  of  the  machine  will  be  marred 
without  proper  use.  The  most  perfectly  regulated  industrial  organ- 
ization or  human  relation  is  liable  to  disaster  unless  a  perfect 
knowledge  exists  of  the  dependence  of  each  unit  and  the  absolute 
necessity  for  a  harmonious  whole. 

Discipline,  rules,  regulation,  etc.,  cannot  secure  this  without 
the  development  of  a  fellow  feeling  that  recognizes  the  human 
factor  as  well  as  the  mercenary  results  of  industrial  effort,  and 
together  they  will  reduce  the  toll  of  accidents  if  the  intimate  bene- 
ficiary public  also  exacts  that  the  product  consumed  or  used  shall 
not  be  tainted  by  the  tears  of  despair  or  saturated  by  the  blood 
of  victims  that  human  foresight  can  save. 

We  have  supposed  that  the  age  of  pre-civilization  was  the 
age  of  selfishness  on  the  theory  that  "what  is  thine  must  be  mine" 
with  its  consequent  casualties  in  the  survival  of  the  fittest. 


HAZARD  OF  VOCATIONS  COMPARED  WITH  MINING.    161 

In  this  supposed  enlightened  civilized  age  we  have  believed 
that  the  preservation  of  life  and  limb  does  not  belong  only  to 
the  fittest,  but  is  the  inherent  right  of  all,  regardless  of  age,  sex, 
station  in  life,  condition  of  health  or  strength  of  limb. 

In  the  past  the  juggernaut  of  selfishness  crushed  out  the  lives 
of  mankind,  because  the  standard  of  value  of  human  life  was  meas- 
ured largely  by  the  necessities  of  the  strong. 

In  the  present  age  of  ambitious  inventions  and  good  intentions, 
we  are,  through  ignorance,  indifference  and  lack  of  foresight,  pav- 
ing the  way  to  a  greater  hell  of  mangled,  crippled  and  life-crushed 
mankind  than  existed  in  the  pre-civilized  times. 

Of  course,  thanks  to  our  limitations  of  knowledge,  some  sacri- 
fice is  generally  a  pre-requisite  to  success.  The  bones  of  the  pioneer 
seem  destined  to  bleach  the  blazed  pathway  of  any  line  of  discovery 
or  progress. 

That  is  the  ideal  sacrifice  of  progress  and  brotherhood,  and 
often  the  name  of  the  suffering  leader  or  pioneer  is  perpetuated 
in  the  development  of  the  discovery,  visualized  in  marble  or  indus- 
try, or  enthroned  in  the  hearts  of  his  beneficiaries. 

The  death  toll  of  accidents  along  these  pioneer  lines,  while 
often  singularly  numerous,  as  now  experienced  in  the  mastery  of 
aviation,  still,  if  with  the  sacrifice  of  each  life  the  problem  of 
safety  gradually  reaches  solution,  we  will  not  be  true  to  our  racial 
instincts  and  our  obligations  to  the  future  if  we  close  the  door 
before  the  problem  is  solved  and  man's  dominion  over  the  air  will 
equal  that  of  land  and  sea. 

Yet  such  sacrifices  are  infinitesimal  compared  with  the  aggre- 
gate life  toll  paid  annually  on  the  altars  of  ignorance,  indifference, 
lack  of  foresight,  discipline,  safeguards,  greed,  selfishness  and 
penury. 

Let  us  scan  the  following  statistics  and  later  make  some  com- 
parative analyses: 

The  6,000  killed  and  wounded  in  our  Spanish  and  Philippine 
wars  and  105,000  killed  and  wounded  in  six  of  the  bloodiest  battles 
of  the  Civil  War  sink  into  insignificance  compared  with  the  follow- 
ing annual  industrial  toll  of  casualties  exacted  by  the  so-called 
civilized  age: 

In  the  year  1908  Great  Britain  had  3,447  killed  and  323,224 
injured;  German  Empire  had  9,687  killed  and  662,321  injured. 
While  in  1911  the  United  States  had  40,000  killed  and  over  500,000 
injured;  the  railroads  contributing  10,396  killed  and  150,159 
injured. 


162          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

Our  statistical  records  of  accidents  outside  the  railroads  and 
mining  are  far  from  being  as  complete  as  the  German  and  British, 
and  it  is  interesting  to  note  the  analyses  of  the  German  records, 
showing  the  actual  proportion  of  all  accidents  divided  between  the 
different  vocations  and  their  respective  hazards  : 

German  Percentages  of  Accident  Hazards. 

Partial          Complete 

Classification.  Deaths.  Injured.     Disablement.  Disablement. 

*Agricultural  &  Hort....  30^  43^  45  32^ 

Iron  and  Steel  Industry.  ly*  Wl/2  13  13 

Mining    .................  19  8#  6  5 

Building  Construction    .  .  Sy2  7l/2  6  5% 

State  Emp.  &  R.  R  .....  Sl/2  4  4  18 

Wood   Industry    ........  2  Zl/2  3%  1 

Warehouses   ............  2y2  2  2*4  2*4 

Quarries    ...............  2*/2  2  l*/2  3 

Textile  .................  1  2  2*/2  1 

Excavations   ............  2  1^4  \y2  4% 

Teaming    ...............  2*/2  \y4  ____  ____ 

All  other  industries  .....  13^  13^  15 


Total  per  cent  .........   100  100  100  100 

Industrial.  Agricultural. 
The  Hazard  of  Industry  or  Occupation  ........     43     %  33     % 

Employers'  fault    .............................     17^%  18 

Workers'  fault    ...............................     29^%  25 

Employers'  and  workers'  fault  .................     10    % 


*Note  specially  the  surprising  ratio  of  agricultural  casualties. 

The  British  relative  hazard  of  occupation  other  than  agricul- 
ture is  shown  for  the  year  1908  as  follows: 

Deaths. 
Home    Shipping   Trade  ............................  1^  per  M.  employed. 

Docks     ...........................................  iy3  per  M.  employed. 

Mines    ............................................  \y$  per  M.  employed. 

Quarries    ..............................  .  ...........  1      per  M.  employed. 

Railways    .........................................  1      per  M.  employed. 

Building  Trade  ..................................  0.9     per  M.  employed. 

Factories    .......................................  0    ^  per  M.  employed. 

British  home  and  foreign  shipping  trade: 

Deaths  on  sailing  vessel  trade,  12.69  Per  M.  employed;  deaths 
on  steam  vessel  trade,  4.45  per  M.  employed. 

To  offset  these  foreign  statistics  we  woefully  lack  in  general 
as  well  as  detailed  statistics  of  accident,  except  in  relation  to  mining 
and  railroads.  The  records  in  these  two  departments  are  fairly 
complete  and  are  published  from  time  to  time  with  startling  effects, 
when  given  in  a  collective  sense. 

Analyzed  in  relation  to  other  accidents  and  preventable  dis- 
eases, for  the  public  at  large  is  as  criminally  guilty  for  deaths  from 


HAZARD  OF  VOCATIONS  COMPARED  WITH  MINING.    163 

preventable  diseases  as  the  employer  for  any  preventable  indus- 
trial accidents,  the  record  of  industrial  accidents,  while  most  de- 
plorable and  demanding  the  most  earnest  consideration  of  the 
question  of  greater  safety  to  life  and  limb,  and  every  safeguard 
that  will  protect  from  and  prevent  every  possible  casualty  or  acci- 
dent, yet  when  placed  in  the  proper  ratio  of  contribution  to  deaths 
from  all  causes,  we  find,  according  to  German  statistics,  that 
deaths  from  industrial  accidents  of  every  description  form  only 
eight-tenths  per  cent  of  the  whole,  and  that  of  the  preventable 
diseases  that  the  nation  at  large  is  responsible  for  shows  that 
twelve  times  as  many  die  from  tuberculosis;  nine  times  as 
many  die  from  pneumonia;  three  times  as  many  die  from  typhoid 
fever ;  one  and  one-half  times  as  many  die  from  diphtheria ;  nearly 
one  and  one-half  times  as  many  die  from  suicides,  and  twice  as 
many  die  from  measles  and  scarlet  fever. 

German  deaths  caused  by  occupational  accident  have  practically 
doubled  since  1890,  when  they  numbered  only  45  per  10,000  deaths 
in  the  Empire,  but  in  1908  the  latest  record  shows  the  number 
had  grown  to  80  per  10,000  deaths,  or  eight-tenths  of  one  per  cent 
of  the  total  annual  deaths. 

The  following  detailed  table  throws  further  light  on  the  rela- 
tive deaths  from  industrial  accidents  in  relation  to  the  ordinary 
"ills  that  flesh  is  heir  to"  in  Germany: 

Tuberculosis     9  7/10% 

Old  Age  9  2/10% 

Paratysis    8         % 

Pneumonia    7  2/10%, 

Cancer 4  1/10% 

Whooping    Cough    1  4/10%. 

Diphtheria    1  3/10%, 

Suicides 1  1/10% 

Measles    7/10%, 

Scarlet  Fever  8/10%, 

Accidents    8/10% 

It  is  unfortunate  that  our  National  Census  Bureau  is  unable 
to  furnish  more  prompt  data  or  statistics  giving  similar  complete 
analysis  of  the  annual  deaths  in  the  United  States.  Until  we  get 
such  a  record  we  are  liable  to  become  hysterical  in  our  conclusions, 
and  our  viewpoints  of  certain  industrial  conditions  clouded  by 
the  absence  of  the  relative  showing  of  industrial  hazards. 

The  last  attempt  at  a  complete  record  is  that  of  the  1909  census, 
which  gives  the  following  surprising  totals  of  deaths  from  accidents 
due  to  familiar  causes : 


164          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

Railroads   6,659 

Autos   632 

Gunshot  and  wounds  944 

Horses  and  vehicles 2,152 

Drowning   4,558 

Street   cars    1,723 

Burns  and  scalds 3,992 

Injuries  at  birth 3,508 

Coal  mining  (6th  in  total  deaths) 1,779 

Sunstroke  and  heat 816 

Other  causes  not  given  in  detail  raise  the  total  accidental 
deaths  to  nearly  43,500,  which  justified  a  recent  writer  to  say  that 
"the  tragedy  of  death  through  industrial  accidents  is  enacted  100 
times  daily  in  this  country,  or  35,000  times  a  year.  The  danger 
to  the  laborer  increases  with  the  progress  of  the  age.  With  each 
new  invention  the  number  of  the  killed  and  injured  rises."  This 
being  largely  true,  let  the  country  at  large  know  also  that  what 
they  consider  a  very  dangerous  avocation,  employing  750,000  in 
the  coal  mines,  the  toll  of  accidents  places  them  SIXTH  in  the  list 
of  relative  hazards,  with  a  death  toll  of  2,412  in  1909,  or  only  60 
more  than  the  1,719  total  killed  on  10  successive  Fourths  of  July, 
ending  with  1911,  or  only  56  more  than  killed  by  street  cars  in 
the  same  year,  and  1,000  less  than  the  number  killed  by  horses  and 
vehicles  and  automobiles  in  the  country  at  large. 

The  purpose  of  this  paper  is  not  to  minimize  the  gravity  of 
mining  accidents,  nor  deplore  their  fatal  recurrence  the  less,  but 
rather  a  plea  that  the  Government  Bureau  of  Statistics  shall  give 
the  subject  of  all  industrial  accidents  the  prop'er  consideration,  so 
that  bulletins  on  accidents  will  furnish  an  intelligent  review  or 
analysis  of  causes  that  will  be  fair  and  just  to  all  industries,  instead 
of  the  present  policy  of  exploiting  the  accidents  of  one  industry 
or  vocation  without  regard  to  the  greater  contribution  to  the  toll 
of  deaths  by  industries,  "vocations  or  preventable  diseases  not  super- 
vised by  commissions  or  tabulated  by  bureaus. 

An  analysis  of  the  casualties  or  industrial  accidents  with  such 
meager  statistics  as  we  have  for  the  United  States  shows  the  follow- 
ing relative  hazards  of  vocation  for  the  ten  years  ending  in  1906: 

First.  Navigation  in  1910:  1,443  wrecks,  365  vessels  totally 
lost,  with  loss  of  vessels  and  cargo  amounting  to  thirteen  and  one- 
half  million  dollars  and  403  lives  lost.  The  ratio  of  lives  lost 
among  the  Gloster  fishermen  was  11.7  per  thousand  employed. 

Second.  Railroad  trainmen,  7.46  per  M.  employed;  railroad 
switch  and  flagmen,  4.50  per  M.  employed. 

Third.    Iron  mines  of  Michigan,  4.25  per  M.  employed. 


HAZARD  OF  VOCATIONS  COMPARED  WITH  MINING.    165 

Fourth.  Anthracite  mines  of  Pennsylvania,  3.18  per  M.  em- 
ployed. 

Fifth.  Lead  and  zinc  mines  of  Missouri,  3.01  per  M.  employed. 

Sixth.  Gold  and  silver  mines  of  Colorado,  2.85  per  M.  em- 
ployed. 

Seventh.    Copper  mining  and  quarries,  2.80  per  M.  employed. 

Eighth.    Bituminous  coal  mining,  2.77  per  M.  employed. 

A  further  analysis  of  the  casualties  in  coal  mining  brings 
out  some  marked  differences  in  the  records  of  the  different  mining 
states,  and  no  wonder  the  Western  metal  miners  look  upon  coal 
mining  as  very  dangerous  compared  with  their  own  relative  state 
experiences. 

Although  the  average  for  the  bituminous  mines  of  the  United 
States  was  only  3.08  per  M.  employed  for  the  last  42  years,  the 
average  for  Utah  for  15  years  is  11.67  Per  M.  employed,  while 
Washington  for  17  years  is  6.40  per  M.  employed;  New  Mexico 
for  14  years  is  7.23  per  M.  employed;  Colorado  for  20  years  is 
5.51  per  M.  employed. 

Coming  to  the  Southern  States,  the  average  for  Tennessee  for 
18  years  has  been  4.38  per  M.  employed ;  West  Virginia  for  25  years 
has  been  4.62  per  M.  employed;  while  Kentucky  for  22  years  has 
been  1.71  per  M.  employed. 

But  Kentucky  has  two  distinct  coal  fields,  which  further  show 
a  very  material  difference  in  the  element  of  safety.  The  Eastern 
field  covers  10,000  square  miles  and  forms  part  of  the  Appalachian 
coal  field.  This  section  of  the  state  employs  about  50%  of  the 
miners  and  produces  40%  of  the  coal.  It  has  never  had  a  serious 
explosion  that  killed  more  than  five  men  at  the  same  time,  but  two- 
thirds  of  the  mining  accidents  in  the  state  occur  in  this  field, 
principally  falls  of  roof. 

Western  Kentucky  carries  6,000  square  miles  of  the  South- 
eastern corner  of  the  great  Central  States  coal  field,  produces  60% 
of  the  coal,  or  about  eight  million  tons  per  annum,  and  employs 
nearly  12,000  men.  This  district  deserves  the  special  considera- 
tion of  the  statistician  of  the  Bureau  of  Mines,  because  here  is  a 
field  almost  as  large  as  that  of  Great  Britain,  Germany,  Belgium 
and  France  put  together,  with  untold  possibilities  of  development, 
with  its  location  adjacent  to  the  Ohio  and  Mississippi  rivers,  yet 
with  a  mining  record  of  freedom  from  accidents  and  industrial 
peace  that  shatters  the  much  exploited  records  of  low  European 
mining  fatalities. 

The  average  for  thirteen  years  ending  in  1905,  according  to 


166          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

Bulletin  No.  90  of  United  States  Labor  Bureau,  gives  Western 
Kentucky  the  enviable  record  of  only  1.05  per  M.  employed  as 
killed  in  the  mines,  while  the  average  for  Belgium  20  years  ending 
1906  was  I.21-,  Great  Britain  16  years  ending  1906  was  1.35; 
Prussia  14  years  ending  1904  was  2.30;  France  10  years  ending 
1910  was  1.25. 

The  last  is  one-third  higher  than  the  average  on  account 
of  the  Courrieries  explosion,  which  killed  more  than  1,000  men 
and  is  the  Titanic  disaster  of  mining. 

Western  Kentucky  not  only  holds  the  record  for  fewer  fatal 
accidents  per  thousand  employed  of  any  coal  field  in  the  world, 
but  in  addition  produces  a  much  larger  tonnage  per  death.  Thus, 
in  1906  the  United  States  produced  about  180,000  tons  for  each  life 
lost;  Great  Britain  produced  about  230,000;  Belgium  produced 
nearly  200,000;  France  produced  nearly  240,000.  These  were  the 
best  records  for  the  European  countries  in  several  years. 

Now,  take  Kentucky  with  a  record  of  an  average  of  300,000 
tons  for  over  ten  years  and  then  separate  the  West  Kentucky  field  and 
you  have  a  record  of  over  800,000  tons  produced  per  life  lost,  with 
the  largest  company  producing  an  average  of  1,100,000  tons  per  an- 
num for  last  ten  years  and  only  ten  men  killed  in  the  ten  years. 

Here  is  a  field  that  is  rapidly  expanding,  and  yet  for  safety 
of  operation  compares  most  favorably  with  the  best  in  any  part 
of  the  mining  world. 

Just  one  more  comparison :  Falls  of  roof  cause  approximately 
50%  of  the  fatalities  in  the  United  States.  Bulletin  No.  333  of 
the  Bureau  of  Mines  gives  the  following  comparison  of  deaths 
from  this  cause:  1906,  Belgium,  0.40  per  M.  employed;  1906, 
France,  0.47  per  M.  employed;  1906,  Great  Britain,  0.64  per  M. 
employed;  1906,  Germany,  0.92  per  M.  employed;  1906,  United 
States,  1.70  per  M.  employed.  Western  Kentucky  for  1911,  0.25, 
or  three  for  the  12,000  men  employed. 

These  comparisons  are  given  only  to  emphasize  the  danger  and 
unconscious  injury  which  indiscriminate  collective  statistics  and 
the  mania  for  general  averages  lead  to. 

If  we  are  to  have  statistics,  let  them  be  thoroughly  analytical, 
not  only  as  between  the  states,  but  also  the  relative  hazards  as 
this  paper  feebly  attempts  to  indicate;  and  that  not  to  draw  from 
us  the  responsibility  for  any  failure  in  the  eternal  vigilance  for 
safety,  but  in  order  that  the  man  we  work  will  be  a  man  not  subject 
to  such  physical  defects  as  to  cause,  according  to  the  German  rec- 
ords, fully  one-third  of  the  fatalities  due  to  the  workman's  fault. 


Government   Construction   of   Railroads   and   Leasing   of   Coal 

Lands. 

FALCON   JOSLIN, 
FAIRBANKS,   ALASKA. 


Mr.  Chairman  and  Gentlemen:  At  the  meeting  of  this  Con- 
gress a  year  ago  at  Chicago,  as  you  all  know,  the  President  of 
the  United  States  was  present  and  made  an  address.  The  Secre- 
tary of  the  Interior  was  also  there  and  made  announcement  of 
the  Alaska  policy,  which  he  had  conceived  after  his  visit  to  Alaska 
during  the  summer. 

In  effect  and  in  substance  the  proposals  of  the  Secretary  of 
the  Interior  to  relieve  the  conditions  in  Alaska  were  first,  that  the 
National  Government  should  acquire,  I  believe  by  condemnation, 
a  certain  unfinished  railroad  which  had  been  begun  by  private 
enterprise  there.  To  construct  it  as  a  government-built,  and  gov- 
ernment-owned road,  from  tidewater  on  the  South  Coast  of  Alaska 
to  connect  witk  the  great  navigable  river  systems  of  the  Yukon  and 
Tanana  rivers. 

He  dwelt  with  great  vigor  on  the  need  of  railroad  transporta- 
tion in  Alaska,  and  put  it  as  the  first  and  most  important  thing 
for  development  of  that  territory.  The  second  of  his  recommendaj 
tions  was  that  the  coal  fields  in  Alaska,  which  have  been  tied  up 
for  about  seven  years  under  executive  orders,  should  be  opened 
for  development.  That  in  so  opening  them  the  ancient  law  offering 
them  for  sale  in  fee  simple  titles  should  be  abandoned,  and  that 
a  new  system  entirely  should  be  started.  That  those  coal  lands 
should  be  leased  in  units  sufficiently  large  to  enable  mines  to  be 
opened,  and  that  the  title  should  be  forever  held  by  the  National 
Government.  That  those  who  desired  to  work  them  should  do  so 
under  a  leasehold,  and  yield  to  the  treasury  of  the  National  Gov- 
renment  annually  a  royalty  on  the  amount  of  coal  that  they  might 
produce  and  market.  The  recommendations  of  the  Secretary  of 
the  Interior  seemed  to  offer  the  first  light  towards  really  beginning 
the  development  in  that  territory  since  it  had  been  locked  up 
in  1906. 

Those  of  us  who  live  in  Alaska  and  who  had  tried  all  the  ways 
we  knew  to  get  the  restrictions  on  the  development  of  the  country 


168          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

removed,  and  had  tried  in  vain,  hailed  with  delight  the  coming  of 
the  Secretary  of  the  Interior  himself  to  Alaska,  to  study  its  condi- 
tion. We  were  pleased  to  know  that  he  had  considered  it  sufficiently 
important  to  come  before  this  great  American  Mining  Congress  and 
announce  for  the  first  time  his  program  for  relieving  the  conditions 
there.  No  subject  before  the  Government  is  greater  in  importance 
than  the  development  of  its  colonies.  I  speak  advisedly,  for  this 
republic  has  become  an  empire,  and  owns  colonies,  and  Alaska  is 
one  of  its  colonies.  It  also  owns  possessions  beyond  the  seas,  and 
I  am  afraid  has  departed  far,  far  from  the  principles  of  a  real 
republic  in  so  doing.  But  those  things  are  beside  the  question. 
We  who  are  the  colonists  up  there  feel  the  pressure  of  unjust  and 
unlawful  actions  at  the  Central  Government.  In  addition  to  the 
natural  hardships  and  burdens  of  that  country,  we  have  had  hard- 
ships imposed  upon  us  by  our  administrative  rulers,  that  men  ought 
not  to  be  called  upon  to  bear.  We  were  glad  when  the  Secretary 
of  the  Interior  announced  these  proposals. 

The  American  Mining  Congress  passed  a  resolution  authoriz- 
ing a  committee  of  five  from  the  body  of  this  organization  to  be 
appointed  to  co-operate  and  assist  the  Secretary  of  the  Interior  in 
carrying  through  what  then  must  have  seemed  to  this  Congress  a 
feasible  and  possible  solution  of  those  difficulties.  Following  that 
resolution,  the  Chairman  and  your  President  and  Board  of  Directors 
appointed  a  committee  of  five,  as  follows : 

Mr.  Wm.  Griffith,  Scranton,  Pa. ;  Mr.  H.  R.  Harriman,  Seattle, 
Wash. ;  Mr.  Falcon  Joslin,  Fairbanks,  Alaska ;  Col.  D.  M.  Stewart, 
Seward,  Alaska;  Mr.  Maurice  D.  Leehey,  Seattle,  Wash.  I  had 
the  honor  to  be  named  the  Chairman  of  the  committee. 

Mr.  Leehey,  shortly  after  appointment,  resigned,  and  Mr.  J.  F. 
Callbreath,  Secretary  of  the  Mining  Congress,  acted  thereafter  in 
his  place. 

I  might  say  in  starting  that  those  who  had  studied  to  some 
extent  the  question  of  Government  ownership  of  railroads  and  of 
leasing  of  coal  mines,  as  opposed  to  private  ownership  of  railroad 
and  fee  simple  title  of  coal  lands,  were  not  in  favor  of  Government 
ownership  of  railroads  on  principle,  nor  yet  were  we  in  favor  of 
leasehold  titles  to  mineral  lands  as  against  freehold  title,  on  prin- 
ciple. (Applause.) 

But  you  must  think  what  condition  that  country  is  in.  Railroad 
building  entirely  stopped,  coal  mining  absolutely  prohibited.  All 
other  industries  retarded  or  strangled  entirely.  You  must  think 
what  position  the  men  are  in  who  have  gone  there  and  spent  their 


RAILROAD  CONSTRUCTION,  LEASING  COAL  LANDS.    169 

money  and  best  years  of  their  lives  hoping  for  growth  and  develop- 
ment in  that  country,  and  for  seven  years  rinding  none.  Any  plan 
whatever  that  promised  relief  to  us  was  worth  working  for.  We 
were  not  going  to  be  particular  about  the  method  if  we  could 
accomplish  the  result. 

Your  committee,  Mr.  Chairman,  undertook  this  work  with  a 
whole-hearted  desire  to  work  out  in  the  best  way  we  could  along 
the  lines  the  Department  itself  had  proposed  a  solution  of  the  coal 
land  trouble  in  Alaska. 

It  was  in  February  or  March  before  anything  whatever  was 
done,  although  Congress  had  assembled  in  December.  Your  com- 
mittee met  in  Washington  early  in  January.  No  bill  had  been 
proposed  by  the  Interior  Department  or  anyone,  carrying  out  the 
recommendations  which  had  been  made  by  the  Secretary  of  the 
Interior  as  to  railroad  building  or  as  to  coal  land  leasing.  The 
committee  at  once  got  in  touch  with  the  officers  of  the  Interior 
Department  and  with  them  began  work  preparing  a  coal  leasing 
bill.  They  found  wide  variations  in  opinion  as  to  what  would  be 
a  workable  and  suitable  leasing  bill.  From  the  beginning  of  the 
discussion  until  now  they  have  never  been  able  to  agree  with  the 
Interior  Department  on  the  form  of  a  leasing  bill.  There  was 
always  a  variance  of  opinion  as  to  what  should  be  drafted  into  it. 
The  principal  points  of  difference  were: 

First.  The  Interior  Department  desired  to  reserve  in  the 
lease  the  right  to  fix  the  price  at  which  the  coal  should  be  sold. 

Your  committee  believed  this  would  prevent  anyone  from 
taking  a  lease  and  thereby  render  the  bill  entirely  useless. 

Second.  The  Department  desired  a  clause  inserted  to  prohibit 
any  railroad  company  or  any  stockholder  in  any  railroad  company 
from  taking  or  holding  any  lease  or  any  interest  as  stockholder 
or  otherwise  in  any  company  holding  a  lease,  and  likewise  to  pro- 
hibit any  holder  of  a  lease  to  own  any  railroad  or  any  interest 
in  a  railroad. 

Your  committee  believed  that  this  would  also  render  the  act 
useless.  A  coal  mine  cannot  be  operated  without  a  railroad  to  haul 
away  the  coal.  The  transportation  of  the  coal  from  the  mine  is 
as  essential  as  the  tunnels,  hoists  or  other  appliances  in  the  mine 
itself.  That  as  there  are  no  existing  railroads  to  any  coal  fields 
in  Alaska,  the  organization  and  construction  of  the  railroads  must 
precede  the  opening  of  coal  mines.  That  these  railroads  cannot 
be  procured  except  in  connection  with  the  coal  mining  enterprise. 
The  mine  must  furnish  the  entire  traffic  to  support  such  a  road. 


170          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

Third.  The  Department  contended  that  the  terms  and  condi- 
tions of  granting  the  lease,  as  well  as  the  manner  and  method  of 
mining  under  it,  should  be  subject  to  rules  and  regulations  to  be 
made  by  the  Secretary  of  the  Interior  and  these  to  be  subject  to 
change  from  time  to  time  at  the  discretion  of  the  Secretary,  espe- 
cially upon  any  transfer  of  a  leasehold. 

Your  committee  believed  that  a  leasehold  to  change  by  the 
lessor  at  discretion  was  not  lease  at  all  but  a  mere  license,  and 
that  no  one  could  afford  to  expend  large  capital  for  opening  a 
mine  and  providing  means  to  market  the  coal  on  a  mere  license. 
That,  the  terms  of  a  lease  should  be  definite  and  clearly  expressed 
in  the  written  contract  and  not  subject  to  change  by  either  party 
to  the  lease  without  the  consent  of  the  other  during  its  term. 

Your  committee  further  believed  that  any  citizen  who  might 
desire  to  take  a  lease  should  be  able  to  look  at  the  law  and  know 
upon  what  terms  and  conditions  it  could  be  had  as  a  matter  of  right 
and  not  as  a  matter  of  favor  resting  in  the  discretion  of  the  Secre- 
tary or  anybody. 

Fourth.  Your  committee  believed  that  the  term  of  a  leasehold 
should  be  for  such  time  as  might  be  necessary  to  work  out  the  coal 
but  requiring  continuous  work. 

The  Department  contended  a  lease  should  be  for  a  short  term 
not  to  exceed  30  years,  and  always  subject  to  change  as  to  working 
at  the  discretion  of  the  lessor. 

Fifth.  The  Department  contended  that  the  leasehold  should 
be  subject  to  forfeiture  for  the  breach  of  any  of  the  terms  of  the 
lease,  or  of  any  rules  or  regulations  which  the  Secretary  might 
make  from  time  to  time  relating  to  the  holding  or  working  the  mine 
or  marketing  the  coal.  Such  forfeiture  to  rest  in  the  discretion 
of  the  Secretary. 

Your  committee  was  willing  that  for  a  failure  to  pay  the  rent 
or  to  work  the  lease  there  should  be  a  forfeiture  after  reasonable 
notice  and  hearing,  but  were  strongly  opposed  to  making  the  title 
subject  to  forfeiture  at  the  will  of  one  party  to  the  lease  for  every 
small  infraction  of  its  terms  or  of  the  proposed  rules  and  regula- 
tions. Forfeiture  is  a  capital  punishment  and  should  be  decreed 
only  for  capital  offenses  and  then  only  after  impartial  trial. 

Your  committee  believed  that  a  forfeiture  for  any  and  every 
breach  of  the  terms  of  a  lease  or  the  regulations,  no  matter  how 
trivial,  would  prevent  anyone  from  seeking  a  lease  and  prevent  the 
securing  of  capital  for  developing  a  coal  mine  under  such  a  title. 


RAILROAD  CONSTRUCTION,  LEASING  COAL  LANDS.    171 

Your  committee  believed  that  one  of  the  most  serious  objec- 
tions to  the  leasing  system  as  against  the  freehold  system  is  the 
forfeiture  provision.  If  one  invests  capital  to  develop  a  freehold 
and  the  enterprise  is  not  successful  one  does  not  lose  everything. 
He  may  hold  the  land  and  his  improvements  and  at  a  later  time 
may  try  again,  or  sell  the  property  and  so  save  at  least  some  of 
the  capital  invested.  While  if  the  investment  is  made  on  a  leasehold 
and  the  enterprise  is  not  successful,  the  forfeiture  of  the  lease 
wipes  out  the  whole  investment. 

Sixth.  The  Department  apparently  proposed  to  regard  all 
the  past  entries  of  coal  land  under  the  existing  law  as  fraudulent 
and  void  and  to  treat  the  entrymen  as  criminals  and  to  insert  such 
provisions  in  the  bill  as  would  finally  and  forever  obliterate  their 
claims. 

Your  committee  insisted  that  these  various  entrymen,  more 
than  two  hundred  in  number,  had  applied  to  purchase  coal  lands 
at  the  price  and  on  the  terms  proposed  by  the  existing  law.  That 
they  had  gone  to  heavy  expense  in  surveying  and  improving  their 
several  tracts  and  had  tendered  the  purchase  price  to  the  Govern- 
ment. That  the  officers  of  the  Land  Department,  after  examina- 
tion of  their  entries  and  maps,  etc.,  had  approved  them  and  accepted 
their  money  and  given  the  receipts  of  the  Government  for  it  to 
an  aggregate  amount  of  more  than  $320,000. 

That  the  Government  has  failed  or  refused  to  give  them  patent 
to  the  lands  while  it  still  retains  their  money.  That  all  these  entries 
have  been  held  up  for  cancellation  for  fraud,  but  only  a  few  de- 
cided by  the  Department.  That  none  of  them  have  ever  had  an 
opportunity  to  have  their  rights  adjudicated  in  the  courts  and  that 
their  entries  must  be  presumed  to  be  free  from  fraud  until  the 
contrary  is  proven. 

That  many  of  them  have  been  indicted  in  the  criminal  courts 
but  none  of  them  tried,  and  that  until  they  are  tried  and  found 
guilty  by  a  court  and  jury  they  are  entitled  to  the  presumption 
of  innocence. 

That  the  civil  and  criminal  proceedings  against  them  have 
been  pending  for  several  years  and  that  the  Government  has  failed 
to  bring  them  up  for  trial  or  decision. 

That  the  officers  of  the  Department  of  the  Interior  are  notori- 
ously and  avowedly  opposed  to  the  principle  of  the  existing  law 
under  which  these  entries  were  made.  That  they  believe  the  coal 
lands  should  not  be  sold  but  should  be  leased.  That  their  hostility 
to  the  existing  law  is  such  that  it  is  wholly  suspended  and  no 


172          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

entries  are  permitted  under  it.  That  the  bias  of  the  Department 
against  the  existing  law  is  such  that  it  is  unfair  that  the  entries 
should  be  submitted  to  them  for  decision. 

Your  committee  insisted  that  the  Department  of  the  Interior 
is  in  effect  the  accuser  and  prosecutor  of  the  existing  entrymen 
and  it  also  provides  the  witnesses  against  them  and  therefore  is 
not  competent  to  be  their  judges. 

The  bill,  therefore,  should  contain  such  provisions  as  would 
enable  these  entrymen  to  submit  their  rights  for  trial  and  deter- 
mination to  the  courts  of  Alaska  with  the  right  of  appeal  by  the 
entrymen  or  the  Government  as  in  other  actions. 

Your  committee  believed  that  unless  an  unbiased  and  judicial 
determination  of  these  entries  under  the  existing  law  could  be 
had  it  would  be  useless  to  pass  any  new  law,  for  faith  in  the  laws 
would  be  destroyed.  No  one  could  be  found  to  apply  for  a  lease 
under  the  proposed  new  law  lest  their  applications  might  be  sus- 
pended even  after  they  should  pay  the  rental  required  and  have 
the  Government's  receipt  for  the  money. 

During  the  progress  of  the  work  the  representatives  of  the 
Department  finally  yielded  on  the  price-fixing  clause  and  agreed 
that  all  reference  to  a  reservation  of  the  right  to  fix  the  price 
of  coal  mined  should  be  omitted  from  the  bill. 

On  the  other  hand,  your  committee  yielded  on  the  point  of 
the  duration  of  the  lease  and  agreed  that  the  term  of  the  lease 
should  be  for  30  years  with  certain  rights  of  renewal. 

But  on  the  other  points  of  difference  agreement  was  impos- 
sible. 

There  was  little  difference  on  the  matter  of  the  area  to  be 
leased.  It  was  readily  agreed  that  the  area  should  be  at  least 
2,560  acres  to  justify  the  expense  of  opening  a  mine.  , 

Neither  was  there  any  great  difference  as  to  the  royalty  to  be 
paid.  It  was  conceded  that  the  royalty  should  be  proportioned 
to  the  selling  price  of  the  coal  and  should  range  from  about  3  to 
10  cents  per  ton. 

It  was  also  agreed  that  75%  of  all  royalties  should  go  to  the 
Alaska  fund. 

Five  or  six  different  drafts  of  a  coal  land  leasing  bill  were 
made.  The  end  of  the  matter  was  a  draft  of  a  bill  on  which  we 
could  come  nearest  to  agreement.  This  bill  was  introduced  by 
Senator  Smoot,  the  Chairman  of  the  Public  Land's  Committee  in 
the  Senate.  The  members  of  your  committee  never  agreed  to  the 


RAILROAD  CONSTRUCTION,  LEASING  COAL  LANDS.    173 

form  of  the  Smoot  bill.  But  it  was  the  nearest  they  could  come 
to  an  agreement  with  the  Interior  Department. 

As  the  bill  must  be  subject  to  discussion  in  both  the  Senate 
and  House  Committees  as  well  as  on  the  floors,  your  committee 
agreed  to  its  introduction  and  resolved  to  endeavor  to  secure 
amendments  to  the  bill  to  make  it  conform  to  their  ideas  before 
it  should  become  a  law. 

There  were  hearings  on  the  bill  before  the  Senate  Committee 
on  Lands,  and  much  time  consumed  in  its  discussion  and  various 
amendments  were  made.  At  that  time  (it  was  May)  it  was  sup- 
posed to  be  near  the  end  of  the  session.  If  anything  was  to  be 
accomplished,  that  bill  must  be  gotten  out  of  the  committee  shortly 
or  it  would  die  in  the  committee  and  never  be  gotten  out  at  all. 
So  it  was  agreed  the  Smoot  bill  should  be  reported  out  of  the 
committee  and  that  such  amendments  as  were  desired  would  be 
inserted  on  the  floor  of  the  Senate,  or  in  the  hearings  before  the 
House  Committee,  where  the  bill  as  yet  has  not  been  introduced. 

When  the  Smoot  bill,  therefore,  was  reported  favorably  by  the 
Senate  Committee  many  thought  it  was  or  had  been  agreed  to  by 
your  committee — which  was  not  the  fact.  Many  people  in  Alaska, 
and  in  the  West,  who  were  interested  in  coal  development  there, 
put  upon  your  committee  some  censure  by  misapprehension.  It 
was  supposed  we  had  agreed  to  the  bill.  As  a  matter  of  fact  your 
committee  believed  that  a  bill  in  that  form  would  be  absolutely 
worthless  and  unworkable. 

Your  committee  drafted  amendments  to  the  Smoot  bill,  eight 
or  ten  amendments,  which  they  thought  and  still  believe  would 
make  the  bill  a  workable  leasing  bill.  These  amendments  were  dis- 
cussed with  Senator  Smoot  and  the  draft  of  them  presented  to 
him  in  the  hope  he  would  offer  them  on  the  floor  of  the  Senate. 

Your  committee  also  re-drafted  the  Smoot  bill,  incorporating 
the  amendments  desired,  and  it  was  introduced  in  the  House.  It 
was  introduced  by  Judge  Booher,  of  the  Territories  Committee 
of  the  House,  and  became  known  as  House  Bill  No.  25749,  or  the 
Booher  Bill,  and  is  now  pending  before  the  Committee  of  the  Ter- 
ritories in  the  House  of  Representatives.  It  is  the  bill  that  the 
Committee  of  the  American  Mining  Congress  believes  would  be 
a  workable  measure  on  a  leasing  basis,  and  which  they  were  willing 
should  become  the  law  of  the  land.  They  believed  it  would  pro- 
vide for  the  opening  of  the  coal  in  Alaska.  No  other  bill  was 
agreed  to  by  the  Committee  of  the  American  Mining  Congress 
nor  has  ever  received  its  sanction.  This  bill  came  up  before  the 


174          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

House  Committee  on  Territories  and  met  fierce  opposition,  and 
was  not  reported  out  of  that  committee.  The  Smoot  bill  was  never 
brought  up  on  the  floor  of  the  Senate.  The  session  ended  with 
nothing  done. 

Whether  the  American  Mining  Congress  believes  in  ownership 
of  coal  lands  in  fee  simple  or  in  the  leasing  principle,  we  of  Alaska 
are  ready  to  accept  any  sort  of  a  bill,  a  leasehold,  a  fee  simple  title, 
or.  any  kind  of  a  bill  that  will  open  that  country  for  development. 
If  we  cannot  get  the  executive  department  or  Congress  to  permit 
the  present  law  of  the  land  to  be  in  operation,  then  we  were  willing 
that  any  kind  of  a  bill  should  be  adopted  which  should  enable  us  to 
proceed  with  our  development,  provided  always — and  you  will  find 
that  there  is  a  provision  in  the  Booher  bill  to  that  effect — that  these 
pioneers  who  have  made  the  first  entries,  who  made  the  first  dis- 
coveries of  coal  land  in  Alaska,  and  located  that  land,  and  attempted 
to  purchase  it  under  the  law,  have  their  rights  protected.  They 
must  have  the  right  to  appear  in  the  courts  with  their  entries,  and 
have  them  adjudicated  by  the  courts  of  the  land,  instead  of  the 
Interior  Department.  (Applause.) 

They  are  entitled  to  a  judicial  consideration,  not  a  political  or 
partisan  decision.  And  in  so  far  as  the  leasing  provisions  of  the 
bill  were  concerned,  they  should  apply  only  to  such  future  entries 
of  coal  land  as  might  be  made,  and  not  affect  the  existing  entries 
which  had  already  been  made  under  the  law.  We  feel  like  this. 
It  is  utterly  useless,  utterly  useless  to  offer  a  lease  to  anybody  under 
a  new  leasing  bill  as  long  as  the  law  which  offered  that  land  for 
sale  is  violated.  The  faith  in  the  law  is  destroyed  and  it  has  been 
done  by  the  Government  itself  at  Washington.  (Applause.) 

The  Government  offered  for  sale  these  coal  lands  in  Alaska  by 
the  act  of  1904  at  $10  an  acre.  These  men  went  there  and  spent 
their  money  and  explored  and  discovered  that  coal  land.  They 
set  up  their  stakes  and  surveyed  it  according  to  the  law,  and 
according  to  the  advice  of  their  lawyers.  The  Government  took 
their  money,  gave  them  receipts  for  it,  recognized  their  possession, 
and  then  by  executive  order  by  a  despotic  President  at  one  stroke 
of  the  pen  destroyed  that  law.  Repealed  it  as  completely  in  effect 
as  if  Congress  itself  had  repealed  it.  What  is  the  use  of  passing 
new  laws  if  there  is  no  faith  to  be  placed  in  the  old  ones?  (Ap- 
plause.) I  for  one  would  never  agree  to  any  leasing  bill  or  any 
other  form  of  bill  that  did  not  recognize  and  accord  justice  to 
the  men  that  had  located  under  the  law  as  it  was  before.  (Applause.) 

The  Interior  Department  officials  say  the  present  law  is  un- 


RAILROAD  CONSTRUCTION,  LEASING  COAL  LANDS.    175 

workable.  I  don't  believe  it.  They  don't  want  to  work  it.  The 
law  provided  for  the  sale  of  coal  lands  in  Alaska  in  i6o-acre  tracts 
at  $10  per  acre.  It  is  a  perfectly  simple,  plain  law.  It  is  as  clear 
as  any  law  in  the  statute  books.  Even  if  the  language  was  obscure, 
the  purpose  and  spirit  are  exceedingly  plain,  and  the  ordinary  rules 
of  interpretation  and  construction  could  readily  be  applied  to  it  if 
there  was  any  sincere  desire  to  execute  the  law.  It  is  the  same 
law  in  effect  that  has  been  in  force  for  40  years  and  more.  Former 
administrations  found  no  difficulty  in  administering  it.  The  truth 
is,  the  executive  department  for  the  last  eight  years  has  not  tried 
to  execute  the  coal  land  law;  in  Alaska,  but  on  the  contrary  has 
tried  to  abrogate  it. 

The  Roosevelt  administration  began  by  suspending  the  opera- 
tion of  the  law  in  1906.  The  Interior  Department  ever  since  has 
been  finding  fault  with  it  and  picking  flaws  in  the  rights  of  those 
who  made  entries  under  it. 

The  Taft  administration  tried  to  ratify  the  Roosevelt  order, 
and  gave  as  a  reason  that  the  law  was  suspended  to  "aid  legislation" ! 

This  was  a  flagrant  encroachment  by  the  executive  department 
upon  the  functions  of  the  legislative  department. 

Where  can  authority  be  found  for  a  President  to  repeal  or 
suspend  a  law  in  order  to  force  the  passage  of  a  new  one?  The 
President  may  recommend  new  laws  or  the  repeal  or  amendment 
of  old  laws.  But  he  is  not  authorized  to  repeal  or  suspend  a  law 
and  then  invite  Congress  to  pass  a  new  one.  He  takes  an  oath 
to  support  and  defend  the  constitution  and  laws  and  to  see  that 
the  laws  are  faithfully  executed.  Congress  alone  has  the  right 
to  repeal  or  suspend  a  law.  The  President  is  limited  to  recom- 
mending and  to  the  exercise  of  the  veto  when  a  bill  is  presented 
for  his  approval. 

Congress  has  never  seen  fit  to  repeal  the  coal  land  law  of 
Alaska,  but  the  executive  department  has  taken  it  upon  itself  to 
suspend  it.  They  have  a  new  "policy,"  a  political  policy,  they 
want  to  see  tried.  The  failure  of  the  Interior  Department  to 
administer  and  execute  the  coal  land  law  of  Alaska  is  nothing 
more  than  an  outrageous  violation  of  official  duty.  (Applause.) 

It  has  ruined  hundreds  of  good  men  and  strangled  the  develop- 
ment of  a  great  province.  (Applause.) 

Now,  as  to  the  railroad  features  of  the  recommendation  of 
the  Secretary  of  the  Interior.  Your  committee  spent  consider- 
able time  on  this  work.  There  had  been  four  or  five  bills  intro- 
duced, some  in  the  House,  and  some  in  the  Senate,  for  railroad 


176          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

construction  in  Alaska  by  the  Government  under  different  forms 
and  plans,  and  on  various  routes. 

Your  committee  drafted  a  bill  for  the  construction  by  the 
Government  of  a  certain  amount  of  railroad  mileage  in  Alaska, 
leaving  the  selection  of  the  route  or  routes  to  be  made  by  a  com- 
mission of  expert  engineers  after  exploration  and  surveys.  They 
did  not  favor  any  particular  route.  They  did  not  attempt  to  select 
in  advance  of  surveys  or  explorations  what  line  or  lines  should  be 
built.  The  Secretary  of  the  Interior  had  recommended  a  particular 
line  for  construction.  No  human  being  could  take  a  yacht  or  a 
boat  and  sail  around  the  coast  of  Alaska  and  say  that  this  was 
the  route  for  railroad  development  for  Alaska,  or  that  was  the  one. 
He  could  see  nothing  but  the  shores  of  the  country,  and  we  do 
not  believe  it  possible  that  anybody  could  pick  out  the  best  route  or 
routes  for  railroad  across  it  by  looking  at  the  shore  line  of  the 
country.  (Applause.) 

There  are  two  things  very  obvious  in  Alaska  when  you  con- 
sider it  from  a  railroad  point  of  view.  There  are  two  great  navi- 
gable river  systems  extending  through  the  interior  of  Alaska. 
There  is  the  Yukon  River  and  its  tributaries,  and  the  Kuskokwim 
and  its  tributaries. 

The  Yukon  River  is  navigable  for  more  than  two  thousand 
miles  along  its  main  river  length.  Steamboats  run  that  distance 
on  it  every  summer.  There  are  tributary  streams  to  the  Yukon 
containing  perhaps  two  thousand  miles  or  more  of  navigable  water. 
So  that  the  Yukon  River  system  of  navigable  water  is  at  least  four 
thousand  miles  in  extent. 

Now,  the  Kuskokwim  River  is  not  so  large,  but  it  is  navigable 
for  about  a  thousand  miles,  and  its  tributary  streams  for  about 
a  thousand  miles  or  more,  so  that  river  system  has  about  two 
thousand  miles. 

Now,  when  you  propose  to  cover  that  country  with  a  system 
of  railroads,  the  most  obvious  thing  in  the  world  is  to  first  connect 
these  rivers  with  tidewater.  It  was  the  same  problem  when  they 
began  railroad  building  in  the  United  States. 

The  Baltimore  and  Ohio  Railroad  connected  the  Chesapeake 
Bay  with  the  waters  of  the  Ohio  River.  It  was  the  problem  then, 
as  it  is  now  in  Alaska,  to  connect  the  river  system  with  tidewater. 
The  Erie  Railroad  connected  the  harbor  at  New  York  with  the 
Great  Lakes.  The  same  principle  prevailed  when  we  undertook 
to  extend  the  transcontinental  railroads  to  the  Pacific  Ocean.  Two 
of  these  railroads  were  authorized  by  the  same  Congress.  The 


RAILROAD  CONSTRUCTION,  LEASING  COAL  LANDS.     177 

Northern  Pacific  and  the  Union  Pacific  were  authorized  for  con- 
struction by  Congress  in  1864,  in  the  same  session,  by  the  same 
Congress.  The  Northern  Pacific  Railroad  was  designed  to  connect 
the  Great  Lakes  with  Puget  Sound.  The  Union  Pacific  was  to 
connect  the  navigable  waters  of  the  Missouri  River  with  the  Pacific 
Ocean  at  San  Francisco.  Now,  we  have  that  same  obvious  problem 
in  Alaska.  We  have  a  much  more  recent  example  of  the  same 
thing  occurring  in  Africa.  There  is  a  railroad  that  runs  from 
Mombasa  on  the  East  Coast  of  Africa  five  hundred  and  twelve 
miles  to  Lake  Nyanza  in  the  interior  of  Africa.  Our  ex-president, 
who  has  been  so  flippant  with  the  rights  of  men  in  Alaska,  recently 
hunted  along  that  railroad  in  Africa.  The  problem  there  was  the 
same  as  we  have  here,  to  connect  tidewater  with  an  inland  navigable 
water  system. 

It  is  so  obvious  that  anyone  who  would  take  a  map  of  Alaska 
and  look  at  it,  though  he  had  no  idea  whatever  of  railroad  construc- 
tion, could  not  miss  seeing  that  the  obvious  and  necessary  thing 
is  to  connect  those  two  rivers  with  tidewater.  One  river  won't  do. 
The  great  valley  of  the  other  would  not  be  served  at  all  if  only 
one  railroad  is  built. 

When  we  say  a  railroad  is  needed  in  Alaska,  that  is  not  the 
problem.  What  we  want  is  a  system  of  railroads  in  Alaska.  What 
is  necessary  is  to  begin  or  resume  railroad  construction  in  Alaska. 
What  will  be  needed  is  probably  ten  thousand  miles  and  more  of 
railroads  in  the  years  to  come.  But  the  first  roads  that  are  neces- 
sary are  two  trunk  lines  to  connect  those  river  systems  with  tide- 
water. 

Now,  those  two  lines  are  not  very  extensive.  Less  than  five 
hundred  miles  would  connect  either  of  those  river  systems  with 
tidewater.  Less  than  one  thousand  miles  of  railroad  would  connect 
both  those  river  systems  with  tidewater. 

When  I  say  that  ten  thousand  miles  is  necessary  it  is  far  under- 
stating the  fact.  In  the  Northern  countries  of  Europe,  Norway, 
Sweden  and  Finland,  which  lie  in  identically  the  same  latitudes  as 
Alaska,  which  have  the  same  climatic  conditions,  they  have  over 
twelve  thousand  miles  of  railroads.  They  have  over  ten  million 
population. 

We  have  so  far  in  Alaska  less  than  five  hundred  miles  of  rail- 
road, and  we  have  only  about  thirty  thousand  population.  Our 
area  in  Alaska  is  590,000  square  miles,  while  their  combined  area 
is  only  443,000.  Our  resources  are  far  superior  to  those  countries. 
If  you  study  them  for  a  little  bit,  you  can  easily  decide  that  Alaska 


178          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

will  certainly  require  more  railroads  in  the  years  to  come  than  is 
now  contained  in  them.  When  once  you  lay  down  a  trunk  line 
of  a  railroad  it  begins  to  grow. 

As  a  former  speaker  said  here  tonight,  it  is  obvious  that  the 
National  Government  is  not  going  into  the  business  of  colonizing, 
building  hotels,  or  issuing  literature,  or  doing  the  thousand  and 
one  things  that  a  railroad  must  do  to  develop  a  country. 

Yet  we  were  willing  to  forego  our  objection  on  principle  to 
the  Government  ownership  of  railroads,  and  to  agree  that  the 
Government  should  at  least  build  these  two  main  trunk  lines  of 
railroads  and  thereby  start  the  railroad  development  in  that  country. 

Therefore,  our  bill  provided  that  the  President  should  appoint 
a  commission  of  engineers  with  an  army  engineer  as  its  chairman, 
to  be  chief  engineer  of  the  work,  similar  to  the  organization  of 
the  commission  which  is  building  the  Panama  Canal.  That  they 
should  be  instructed  to  proceed  to  Alaska,  make  the  necessary 
surveys,  and  be  authorized  to  construct  not  to  exceed  a  thousand 
miles  of  railroads  in  Alaska  on  such  routes  or  lines  as  in  their 
judgment  would  best  develop  the  country.  There  might  be  two 
lines  or  more,  because  these  two  trunk  lines  which  might  connect 
these  river  systems  with  tidewater  would  require  branch  lines  to 
extend  to  the  coal  fields  adjacent  to  them  in  both  instances. 

There  possibly  might  be  three  or  four  lines.  In  the  Philippines 
eleven  different  lines  were  designated  for  construction.  The  Philip- 
pines are  not  populated  by  white  people;  they  are  aliens  and  they 
are  on  the  other  side  of  the  world.  The  little  country  is  only  a 
hundred  and  twenty-five  thousand  square  miles,  contained  in  a 
thousand  islands,  while  Alaska  has  five  hundred  and  ninety  thou- 
sand square  miles  contained  in  a  continent.  Yet  Congress  saw 
fit  a  few  years  ago  to  authorize  the  construction  of  practically  a 
thousand  miles  of  railroad  in  the  Philippines.  It  didn't  attempt 
to  say  this  or  that  shall  be  the  line  to  construct  on.  A  commission 
in  the  Philippines  selected  the  routes,  selected  eleven  different  lines, 
and  asked  for  bids  for  their  construction.  We  want  the  same  thing 
in  Alaska.  The  Philippine  government  under  the  authority  of 
Congress  offered  aid  to  the  Philippine  lines  to  the  extent  of  a 
guarantee  of  4%  interest  on  the  cost  of  the  construction  for  a 
period  of  30  years. 

We  wanted  a  commission  of  experts  to  go  to  Alaska  and 
investigate  the  routes  and  select  those  that  would  do  the  most  good 
in  that  territory,  and  then  proceed  to  build  the  lines,  limiting  them, 
however,  not  to  exceed  one  thousand  miles.  The  bill  did  not  pro- 


RAILROAD  CONSTRUCTION,  LEASING  COAL  LANDS.    179 

vide  for  aid  to  private  builders,  but  proposed  that  the  Government 
itself  build  and  own  the  lines. 

We  provided  in  the  first  draft  of  the  bill  that  as  fast  as  a  line 
should  be  completed,  it  should  be  leased  to  the  highest  bidder  for 
operation.  But  later  we  omitted  this  and  provided  that  the  lines 
should  be  operated  by  the  commission  until  Congress  should  other- 
wise provide. 

Though  your  committee  was  willing  to  agree  to  Government 
construction  and  ownership,  they  were  strongly  against  the  Gov- 
ernment operation  of  railroads.  They  believed  that  Government 
operation  would  produce  dangerous  political  corruption. 

The  Secretary  of  the  Treasury  was  authorized  to  supply  the 
money  necessary  to  construct  the  lines  by  the  issuance  and  sale 
of  3%  thirty-year  bonds,  similar  in  all  respects  to  the  bonds  issued 
to  cover  the  cost  of  construction  of  the  Panama  Canal. 

It  was  further  provided  that  the  bonds  should  be  a  first  lien 
and  charge  on  the  railroad,  and  that  the  net  earnings  of  the  lines 
or  the  rental  received  from  their  operation  in  case  they  were  leased 
should  be  applied  to  the  payment  of  the,  interest  on  the  bonds  and 
also  to  provide  an  annual  sinking  fund  to  pay  the  principal  of 
the  bonds  against  the  time  they  should  become  due. 

There  is  every  reason  to  believe  that  the  earnings  would  be 
amply  sufficient  in  time  to  pay  both  the  principal  and  interest  of 
the  bonds,  and  that  therefore  the  construction  of  the  lines  would 
cost  the  Government  nothing. 

That  bill  seemed  to  meet  with  favor.  The  Secretary  of  the 
Interior,  however,  adhered  to  the  policy  of  recommending  the 
selection  of  the  single  line  which  he  had  formerly  recommended. 

No  further  progress  was  made  with  that  bill  than  the  hearings 
which  were  had  before  both  the  committees  of  the  Senate  and 
House.  Both  committees  seemed  to  be  very  favorable  to  the  plan 
set  forth  in  the  bill.  The  Senate  committee  ordered  the  bill  intro- 
duced in  the  Senate  as  a  committee  bill.  It  is  Senate  Bill  No.  6275, 
and  is  known  as  the  Smith  Bill. 

The  Congress  apparently  were  not  willing  to  go  so  far  as  to 
authorize  the  commission  to  proceed  with  the  construction.  They 
were  afraid  they  would  make  a  mistake.  They  wanted  information. 
They  wanted  to  know  a  little  bit  before  they  authorized  the  ex- 
penditure of  the  money  necessary  to  construct  the  railroads,  where 
they  were  going  to  be  constructed.  So  that  conservatism  resulted 
in  the  passage  of  a  bill  appointing  the  commission  practically  in 


180          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

the  form  that  had  been  proposed  in  the  bill,  but  authorizing  them 
only  to  proceed  to  Alaska,  examine  the  country  and  come  back  and 
report  at  the  next  session  of  Congress  in  December,  methods  and 
routes  for  the  railroads  required  to  develop  the  territory. 

The  fact  that  it  would  be  impossible  for  a  commission  of  engi- 
neers in  two  or  three  months  to  go  to  Alaska  and  survey  three, 
four,  or  five  different  routes  and  come  back  there  and  report  any- 
thing with  specific  certainty  as  to  the  best  and  most  economical 
routes  to  construct,  did  not  deter  Congress  from  attempting  it.  But 
they  have  appointed  an  excellent  commission,  who  have  gone  there 
and  with  great  energy  and  at  considerable  hardship,  have  investi- 
gated the  problem  as  well  as  their  limited  time  and  means  would 
permit.  They  traveled  over  land  through  the  country  clear  into 
Fairbanks,  something  over  four  hundred  miles,  and  back  again. 
There  is  a  rough  wagon  road  on  the  route.  It  would  connect  up 
one  of  the  rivers  with  tidewater.  They  have  examined  the  ocean 
termini  of  all  the  different  routes.  The  route  to  the  other  river 
they  could  not  touch.  There  is  not  even  a  foot  trail  across  it  except 
a  winter  sled  trail.  It  would  take  two  or  three  years  and  probably 
a  million  dollars  to  make  a  survey  of  all  the  possible  routes.  That 
commission  is  now  on  the  way  to  Washington  and  will  no  doubt 
render  its  report  shortly.  It  seems  inevitable  that  their  report  must 
be  that  railroads  are  required  to  connect  those  river  systems  with 
tidewater  and  that  Congress  should  either  construct  those  lines  or 
aid  in  their  construction. 

Now,  there  is  one  other  possibility.  There  are  some  railroads 
in  Alaska.  There  are  eight  or  nine  different  lines  aggregating 
about  500  miles,  mostly  unfinished  lines  or  light  local  narrow  gage 
lines.  There  has  been  more  than  thirty  million  dollars  expended 
in  their  construction.  It  has  all  been  done  by  private  enterprise 
without  any  aid  or  assistance.  They  have  generally  proved  to  be 
sorrowful  adventures,  for  the  men  who  have  attempted  to  build 
there.  Not  a  single  one  of  the  roads  is  profitable,  and  most  of 
them  are  not  even  earning  their  operating  expenses.  One  of  them 
has  been  wrecked  and  is  shut  down  by  the  action  of  the  Government 
in  imposing  a  tax  on  it  so  heavy  that  it  required  practically  all  its 
net  earnings  to  pay  the  tax.  This  was  the  Seward  Peninsular 
Railroad  of  Nome.  It  is  80  miles  long,  but  now  closed  down. 

It  is  possible  that  the  commission  may  recommend  to  Congress 
and  they  certainly  should  recommend,  that  the  restrictions  and 
obstacles  to  construction  of  railroads  by  private  enterprise  should 
be  removed.  I  am  going  to  show  you  why  railroad  construe- 


RAILROAD  CONSTRUCTION,  LEASING  COAL  LANDS.    181 

tion  stopped.  Why  railroad  building  ceased  there  two  or  three  years 
ago,  and  not  a  foot  of  railroad  has  been  built  since. 

One  of  the  burdens  the  railroads  contended  with  there  is  a 
license  tax  of  one  hundred  dollars  per  mile.  If  one  undertook 
to  build  a  railroad  from  the  coast  to  connect  either  one  of  these 
navigable  river  systems  with  the  ocean,  five  hundred  miles  in  length, 
under  that  tax  provision,  he  would  have  to  pay  to  the  Government 
fifty  thousand  dollars  a  year  for  a  license. 

If  the  same  provision  had  prevailed  when  the  Union  Pacific 
was  extended  across  the  unpeopled  portion  of  this  country,  that 
company  would  have  had  to  pay  to  the  Treasury  of  the  United 
States  over  two  hundred  thousand  dollars  a  year  for  a  license. 
The  same  with  the  Northern  Pacific  Railroad. 

Compare  this  with  what  the  Canadian  government  is  doing 
for  railroads  to  develop  their  Northwest  territory.  The  new  Cana- 
dian Grand  Trunk  Pacific  Railroad  is  to  be  thirty-six  hundred 
miles  long.  The  section,  1,800  miles  in  length,  extending  from 
Winnipeg  to  Prince  Rupert,  just  across  the  boundary  from  Alaska, 
is  assisted  by  the  Canadian  government  by  a  guarantee  of  the  prin- 
cipal and  interest  to  the  extent  of  seventy-five  per  cent  of  the  cost 
of  the  line.  In  addition  the  government  agrees  to  pay  the  interest 
themselves  for  seven  years  as  a  free  gift.  This  will  amount  to 
more  than  four  hundred  dollars  per  mile  per  year  for  seven  years. 
In  Canada  the  government  pays  a  bonus  for  the  construction  of 
railroads,  whereas  in  Alaska  the  company  must  pay  the  Government 
a  hundred  dollars  a  mile  for  each  mile  operated.  (Applause.) 

In  Canada,  if  one  offered  to  build  five  hundred  miles  of  road, 
the  same  as  would  be  required  to  connect  one  of  those  river  systems 
in  Alaska  with  tidewater,  the  bonus  from  the  government  would 
be  two  hundred  thousand  dollars  a  year  for  seven  years.  This 
sort  of  thing  helps  railroads  in  their  infancy  and  enables  them  to 
get  on  their  feet  and  become  paying  properties.  In  Alaska  we 
should  have  to  pay  the  government  fifty  thousand  dollars  a  year 
continuously  and  without  regard  to  their  infancy  or  their  earnings. 

In  addition  to  this  tax  there  are  three  other  systems  of  taxa- 
tion to  which  Alaska  railroads  are  subject,  but  which  I  will  not 
now  attempt  to  discuss. 

The  eastern  half  of  the  Grand  Trunk  Pacific  Railroad  extend- 
ing from  Winnipeg  to  the  vicinity  of  Halifax  the  government  is 
building  itself,  entirely  at  its  own  cost.  It  is  to  be  leased  to  the 
Grand  Trunk  Company  for  50  years  at  3%  on  the  cost,  provided 
that  the  company  is  required  to  pay  no  rental  for  seven  years. 


182          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

When  the  Northern  Pacific  and  the  Union  Pacific  were  ex- 
tended across  the  West  here  the  Government  did  not  require  them 
to  pay  a  license  or  prohibit  them  from  mining  coal  along  their 
lines.  The  Northern  Pacific  came  through  this  town  or  to  the  place 
where  this  town  now  stands  in  about  1872.  The  government 
granted  to  that  company  twelve  thousand  eight  hundred  acres  of 
land,  including  the  coal,  for  every  single  mile  of  road  which  was 
built.  In  the  aggregate  more  than  thirty  million  acres  of  land  was 
granted  to  the  railroad  company  for  constructing  the  line  from 
Lake  Superior  to  Puget  Sound,  passing  through  this  place,  less  than 
fifty  years  ago.  In  Alaska,  instead  of  granting  a  railroad  company 
a  free  gift  of  twelve  thousand  acres  for  every  mile,  they  will  not 
permit  a  railroad  or  anyone  else  to  buy  one  single  acre  at  any  price 
whatever.  The  railroads  that  are  built  there  must  go  to  California 
and  import  oil  or  go  to  British  Columbia  and  import  coal  to  burn 
in  their  locomotives. 

Now,  is  it  any  wonder  that  the  country  has  not  developed  by 
private  enterprise  against  those  conditions? 

There  are  other  things.  There  are  other  serious  difficulties 
that  those  unfinished  railroads  are  expected  to  overcome,  which  I 
will  not  attempt  to  detail  to  you.  They  are  difficulties  and  obstruc- 
tions the  government  has  imposed,  and  not  the  natural  difficulties 
by  way  of  climate  or  distance.  These  are  great  but  we  don't  com- 
plain of  them.  We  know  what  they  are,  and  are  ready  to  face  them. 

All  those  things  combined,  as  I  say,  have  absolutely  stopped 
railroad  construction  there. 

Now  it  is  simply  a  question,  will  the  government  itself  build 
the  railroads  or  will  they  loosen  up?  Let  them  remove  these  re- 
strictions. 

If  a  railroad  were  permitted  to  purchase  coal  lands  at  any  rea- 
sonable price,  we  should  have  had  railroads  to  the  coal  fields  in 
Alaska  five  years  ago.  We  should  have  now  great  coal  mines  and 
prosperous  towns  and  great  smelters  and  thriving  industry.  Is 
there  anything  more  reasonable  than  to  permit  a  railroad  to  pur- 
chase a  sufficient  amount  of  coal  land  on  which  to  open  a  mine  ?  It 
would  not  be  necessary  for  them  to  have  12,800  acres  for  each 
mile.  Permit  it  to  mine  coal  to  run  its  locomotives  and  to  fill  its 
cars  for  traffic.  If  they  could  buy  one  tract  of  say  5,000  acres  for 
each  100  miles  of  road  it  would  be  sufficient. 

Even  the  gift  of  12,000  acres  for  each  mile  has  not  proven  dis- 
astrous to  the  territory  along  the  Northern  Pacific.  It  surely  could 


RAILROAD  CONSTRUCTION,  LEASING  COAL  LANDS.     183 

not  be  very  dangerous  to  allow  a  railroad  in  Alaska  to  buy  enough 
for  one  mine. 

That  is  how  the  development  of  Alaska  has  been  stopped,  and 
that  is  why  your  committee  were  willing  to  say  that  they  would 
be  glad  to  see  the  Government,  itself,  build  a  railroad.  Even  though 
it  might  prove  to  be  an  expensive  experiment  it  would  be  just  for 
the  government  to  make  it.  They  have  stopped  every  one  else. 

It  is  difficult  to  restrain  our  feelings  when  we  speak  of  it. 
This  commission  is  now  to  report  shortly.  It  seems  to  me  to  be  the 
duty  of  the  American  Mining  Congress  and  all  of  the  good  citizens 
of  the  United  States  to  get  behind  their  report.  They  are  sure  to 
point  out  these  evils,  and  to  recommend  some  feasible  plans  be- 
cause they  are  intelligent  men  and  giving  the  matter  careful  atten- 
tion. (Applause.) 

If  we  can  procure  the  resumption  of  railroad  building  and 
the  opening  of  the  coal  field,  the  results  that  follow,  as  the  President 
said  in  a  message  a  year  ago,  will  astonish  the  world.  It  is  as  true 
as  you  live  that  that  arctic  colony,  that  oppressed  colony,  is  one  of 
the  richest  lands  in  the  world.  It  is  misgoverned,  worse  than  the 
New  England  colonies  or  the  Virginia  colonies  were  in  1770  when 
they  rebelled.  (Applause.)  Because  the  oppression  of  these  Amer- 
ican colonies  on  the  Atlantic  Coast  was  in  some  sense  reasonable, 
and  the  oppression  of  Alaska  is  without  sense  or  reason.  (Ap- 
plause.) It  is  not  as  galling  for  men  to  be  taxed  without  presenta- 
tion as  it  is  to  be  made  the  victims  of  fools,  dilettanti  statesmen 
and  bureau  clerks  striving  for  power  at  Washington.  They  have  set 
up  a  principality  of  forest  and  other  reserves  within  the  republic 
and  seek  to  become  little  monarchs,  and  from  that  source  we  are 
suffering. 

It  is  hard  for  people  to  believe  that  Alaska  is  one  of  the  richest 
lands  in  the  world.  But  from  one  extremity  to  the  other,  from  the 
southeast  to  the  northwest  and  from  the  northeast  to  the  south- 
west, it  is  gold-bearing  country.  It  has  hardly  been  touched.  You 
can  cross  it  in  the  same  direction  and  will  cross  coal  fields  in  every 
part  of  it.  I  spoke  a  little  while  ago  of  those  European  countries 
which  subsist  on  agriculture  and  fisheries.  They  have  no  coal  or 
gold.  We  have  those  things  in  almost  unlimited  abundance  in 
Alaska,  and  we  have  copper  and  tin  which  they  haven't  in  those 
northern  European  countries.  Our  agricultural  resources  are  as 
great  as  theirs  and  our  fisheries  fully  as  extensive.  The  United 
States  government  experimental  farm  at  Fairbanks  last  summer 
produced  oats  that  thrashed  one  hundred  and  fifteen  bushels  to  the 


184          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

acre.  Wheat  that  produced  sixty-seven  bushels  to  the  acre  and 
potatoes  that  produced  eight  tons  to  the  acre.  There  are  millions  of 
acres  of  similar  ground  right  around  it.  I  believe  it  is  as  rich  a 
country,  acre  for  acre,  as  any  land  in  the  world.  You  know  the 
State  of  Washington  is  a  rich  State.  The  Puget  Sound  country  has 
a  most  famous  crop  of  timber.  You  have  little  gold  here.  You 
have  the  finest  fruit  land  in  the  world,  and  wheat  land  that  will 
produce  a  hundred  bushels  to  the  acre  here  in  the  vicinity  of  Spo- 
kane. But  we  have  in  Alaska  land  that  will  produce  a  hundred 
bushels  to  the  acre,  also.  A  large  portion  of  this  State  is  barren 
mountains  and  sage-brush  country.  There  is  much  barren  lands, 
mountains  and  swamp  land  in  nearly  all  States.  We  have  the  same 
thing  in  Alaska.  We  have  up  there  what  they  call  the  tundras  on 
which  trees  do  not  grow,  but  even  they  are  productive.  They  grow 
reindeer  on  the  tundras.  In  Seattle  yesterday  I  had  a  reindeer  steak 
that  came  from  our  tundra  lands  in  Alaska.  Men  who  know  say 
these  tundras  supposed  to  be  worthless  will  yet  produce  a  food  sup- 
ply equal  to  the  best  pasture  land  in  Montana  or  Texas.  All  that 
is  needed  is  that  at  Washington  we  have  a  little  reasonable  intelli- 
gence to  open  it  up.  (Applause.)  If  a  man  should  find  a  spring 
in  the  deserts  of  the  Southwest  you  wouldn't  expect  the  Depart- 
ment at  Washington  to  reserve  it  and  prohibit  a  man  from  taking 
a  drink  of  water  out  of  it. 

Alaska  is  an  arctic  country.  It  has  coal  all  over  it.  There  are 
nine  thousand  millions  of  tons  of  coal  there  almost  in  sight  of  Fair- 
banks where  I  live.  This  is  a  recent  estimate  of  the  Geological 
Survey.  We  cannot  touch  any  of  that  coal.  There  needs  no  other 
statement  to  show  you  how  foolish  the  policy  of  the  administration 
at  Washington  has  been. 

Mr.  Chairman,  I  will  not  take  more  time.  I  am  afraid — when 
I  start  talking  of  Alaska  I  never  know  when  to  stop. 

Chorus :     Go  on,  Go  on,  Go  on. 

MR.  FALCON  JOSLIN:  There  is  no  subject  upon  which 
more  cruel  wrong  has  been  done  than  has  been  done  toward  Alaska. 
There  is  no  subject  that  is  of  greater  importance  or  more  financial 
and  national  value  to  this  republic  today  than  the  development  of 
that  country. 

I  thank  you,  gentlemen.     (Applause.) 


A  "Day-in-Court"  for  the  Alaska  Coal  Claimants. 

MAURICE  D.    LEEHEY, 
SEATTLE,   WASHINGTON. 


Contests  arising  under  the  public  land  laws  of  the  United 
States  are  decided  by  the  General  Land  Office.  An  exception  is 
made  of  contests  between  mineral  claimants  under  the  L.ode  and 
Placer  Laws.  When  the  Placer  law  of  1870  and  the  Lode  law  of 
1872  were  enacted,  about  the  only  contests  demanding  serious  con- 
sideration were  those  of  conflicting  mineral  claims,  or  the  conflicting 
rights  of  different  claimants  under  the  mining  laws.  Congress 
wisely  provided  for  the  determination  of  such  conflicting  claims 
by  the  courts.  The  system  has  worked  well.  Such  disputes  are 
brought  to  trial  in  the  local  courts,  whose  judgment  is  accepted 
by  the  General  Land  Office  as  determining  who  has  the  better 
right  of  possession. 

In  these  days  by  far  the  most  numerous  and  important  con- 
tests which  now  arise  under  the  public  land  laws  are  the  contests 
with  the  government  itself.  The  more  stringent  policy  of  recent 
years  in  the  administration  of  our  public  lands  has  led  to  the  ap- 
pointment of  scores  of  field  agents,  and  a  special  division  in  the 
General  Land  Office  is  devoted  solely  to  detective  work.  The  field 
agents'  reports  are  confidential,  and  the  information  collected  in 
this  important  division  of  the  General  Land  Office  is  not  for  public 
inspection.  It  is  not  even  revealed  to  the  claimant  himself.  No 
one  denies  that  the  department  should  carefully  investigate  each 
entry,  but  this  system  has  been  developed  to  such  an  extent  that 
the  officials  in  charge  now  make  a  careful  search  for  excuses  on 
which  to  deny  an  application.  A  disposition  .to  be  technical  is 
shown,  and  while  no  doubt  the  officials  of  the  General  Land  Office 
are  striving  for  what  they  believe  to  be  right,  yet  as  a  result  of  this 
system  therexhas  been  developed  a  disposition  to  contest  each  entry. 
Indeed  the  spirit  developed  in  the  General  Land  Office  toward 
claimants  to  public  land  is  substantially  the  same  as  that  of  many 
prosecuting  attorneys  toward  persons  charged  with  crime.  A  good 
prosecuting  attorney  will  not  hesitate  to  dismiss  a  charge  when  sat- 
isfied the  evidence  will  not  sustain  it,  and  so  the  worthy  officials  of 
the  General  Land  Office  will  and  do  recommend  entries  for  approval 


186          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

and  pass  the  same  to  patent  when  fully  satisfied,  but  in  their  case 
is  developed,  unconsciously  no  doubt,  much  the  same  prejudice 
against  the  claimant  as  that  developed  in  the  prosecutor  against 
persons  charged  with  crime.  It  is  but  human  nature  to  do  so,  and 
these  remarks  are  addressed  to  a  proposed  remedy. 

The  officials  of  the  General  Land  Office  investigate  the  entry, 
perhaps  file  charges  against  it,  and  then  they  hear  the  evidence 
themselves,  and  pass  judgment  upon  that  same  entry.  It  is  first 
investigated  and  evidence  secured  by  witnesses  unknown  to  the 
claimant,  who  is  given  no  opportunity  to  cross-examine,  or  even 
to  know  what  testimony  has  been  given  against  him  so  that  he  may 
dispute  the  charges  or  furnish  evidence  to  the  contrary.  In  fact  he 
may  never  know  this  evidence,  for  all  that  information  is  collected 
and  maintained  in  the  General  Land  Office  as  forever  private  and 
confidential.  Even  the  public  prosecutor  in  the  criminal  court  must 
produce  his  witnesses  to  testify  in  the  presence  of  the  accused,  and 
the  vilest  criminal  is  entitled  to  the  privilege  of  cross-examining  the 
witnesses  against  him.  The  present  system  in  the  Land  Office  not 
only  denies  cross-examination,  but  even  denies  the  entrymen  knowl- 
edge of  the  charges  and  any  opportunity  to  know  the  testimony 
against  him  that  he  may  better  prepare  to  refute  the  same. 

These  remarks  apply  to  contests  by  the  government,  and  to 
charges  filed  by  special  agents  of  the  Interior  Department  and  the 
Forest  Service.  We  contend  that  the  system  is  wrong;  in  the  first 
place,  because  the  officials  of  the  General  Land  Office  should  not 
serve  in  the  triple  capacity  of  detective,  prosecutor  and  judge,  and 
in  the  second  place,  because  the  entryman  is  entitled  to  hear  the 
testimony  against  him,  and  to  have  an  opportunity  to  cross-examine 
the  witnesses  and  interpose  his  defense.  In  other  words,  he  should 
have  the  right  to  the  same  trial  upon  charges  brought  against  him 
by  the  government  that  he  would  have  if  charged  with  murder  or 
arson,  or  sued  for  a  debt. 

Such  contests  are  nominally  heard  before  the  Register  and  Re- 
ceiver of  the  Local  Land  Office,  but  are  decided  in  the  General  Land 
Office  at  Washington.  The  decision  of  the  Register  and  Receiver 
is  advisory,  and  usually  has  but  little  weight  in  deciding  contests 
with  the  government.  The  decision  of  the  Commissioner  in  the 
General  Land  Office  is  really  the  decision  of  some  examiner  or 
bureau  clerk.  It  is  a  physical  impossibility  for  the  Commissioner 
to  pass  upon  the  numerous  contests.  As  a  matter  of  fact,  he  rarely 
does  so,  for  his  time  is  well  occupied  with  the  administrative  duties 
of  his  important  office.  The  contests  are  decided  by  under-paid 


"DAY-IN-COURT"  FOR  ALASKA  COAL  CLAIMANTS.      187 

and  frequently  inefficient  bureau  employes,  who  live  in  the  political 
atmosphere  of  the  national  capital,  thousands  of  miles  away  from 
the  people  on  the  public  land,  entirely  out  of  sympathy  with  the 
people  of  the  west,  whose  conditions  they  do  not  fully  understand, 
and  above  all,  these  bureau  officials  are  not  directly  responsible  to 
the  people.  The  only  relief  which  may  be  obtained  from  the  de- 
cision of  the  General  Land  Office  is  by  an  appeal  to  the  Secretary 
of  the  Interior,  and  here  again  the  decision  is  written  by  other  bu- 
reau officials  who  live  and  work  under  precisely  the  same  conditions. 

One  result  of  this  system  is  a  number  of  conflicting  decisions 
between  the  courts  and  the  land  department.  This  is  indeed  an 
evil,  but,  to  our  mind,  is  of  less  importance.  However,  this  evil 
alone  prompted  the  Secretary  of  the  Interior  to  recommend,  under 
date  of  June  20,  1910,  that  appeals  be  allowed  from  the  Secretary 
of  the  Interior  in  land  cases  to  the  Supreme  Court  of  the  District 
of  Columbia,  and  on  the  following  day  President  Taft  sent  the  fol- 
lowing special  message  to  Congress : 
"To  the  Senate  and  House  of  Representatives : 

"There  are,  perhaps,  no  questions  in  which  the  public  has  more 
acute  interest  than  those  relating  to  the  disposition  of  the  public 
domain.  I  am  just  in  receipt  from  the  Secretary  of  the  Interior  of 
recommendation  that  in  disposition  of  important  legal  questions, 
which  he  is  called  upon  to  decide  relating  to  the  public  lands,  an 
appeal  be  authorized  from  his  decision  to  the  court  of  appeals  for 
the  District  of  Columbia. 

"I  fully  indorse  the  views  of  the  Secretary  in  this  particular, 
which  are  set  forth  in  his  letter,  transmitted  herewith,  and  urge 
upon  the  Congress  an  early  consideration  of  the  subject. 

"WM.  H.  TAFT." 

The  right  to  appeal  to  the  Supreme  Court  of  the  District  of 
Columbia  from  the  decision  of  the  Secretary  of  the  Interior  might 
serve  to  avoid  conflicting  decisions  between  the  courts  and  the  land 
department  upon  questions  of  law.  It  might  do  so,  but  it  would  be 
a  tedious  and  awkward  method,  would  involve  still  further  delay 
and  much  more  expense,  and  at  best  give  relief  for  only  one  of  the 
great  evils  of  the  present  system.  The  greatest  evil  of  all  is  to  com- 
pel the  entryman  to  try  his  case  before  the  detective  who  collects 
the  evidence  against  him  and  the  prosecutor  who  presents  that  evi- 
dence. This  would  not  be  corrected  by  permitting  appeals  on  ques- 
tions of  law  from  the  Secretary  of  the  Interior  to  the  courts. 
Neither  would  it  give  relief  from  the  present  star-chamber  method 
of  trying  cases  upon  evidence,  secretly  collected,  and  of  which  the 


188          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

entryman  has  no  knowledge.  Then,  too,  it  would  not  correct  the 
present  slow  process,  but  would  render  applications  for  patent  even 
more  tedious,  and  would  involve  the  claimants  in  the  additional  ex- 
pense of  employing  counsel  at  Washington  to  appear  before  the 
courts  of  the  District  of  Columbia.  Why  not  adopt  the  same  sys- 
tem as  to  government  contests  which  has  for  forty  years  operated 
so  successfully  in  determining  the  rights  of  conflicting  mineral 
claimants?  Why  not  provide  for  the  trial  of  these  contests  in  the 
local  courts?  The  government  is  already  well  represented  by  its 
field  agents  in  each  community,  who  will  collect  the  evidence,  and 
the  U.  S.  District  Attorney  may  prosecute  the  charges.  The  entry- 
man will  have  an  opportunity  to  confront  his  witnesses  and  cross- 
examine  them.  The  trial  will  proceed  fairly  and  in  accordance  with 
our  usual  court  practice. 

Many  honest  claimants  of  coal  lands  in  Alaska  are  victims  of 
this  outrageous  system.  The  coal  lands  of  Alaska  were  withdrawn 
from  entry  on  November  12,  1906,  but  it  was  understood  that  the 
rights  of  those  who  had  made  valid  locations  prior  to  that  date 
would  be  fully  protected,  and  patents  granted  them  in  due  course. 
Indeed  the  original  order  of  withdrawal  was  modified  to  facilitate 
this.  Over  1,000  claims  have  been  located  in  Alaska  under  the 
Act  of  April  28,  1904.  Some  300  of  these  have  been  surveyed  at 
the  sole  expense  of  the  claimants,  who  have  also  paid  into  the 
United  States  Treasury  over  $360,000,  but  so  far  not  a  single  patent 
has  been  issued.  It  has  been  charged  that  all  of  these  claims  are  in- 
valid. We  presume  that  only  the  officials  of  the  General  Land 
Office  have  sufficient  knowledge  to  speak  of  all  entries,  but  we  do 
know  of  certain  claims  which  are  entirely  valid,  made  in  strict  com- 
pliance with  the  law,  and  which  should  have  been  patented  years 
ago.  We  know  of  men  who  went  into  both  the  Katalla  and  Mata- 
nuska  regions  and  spent  their  time  and  money  in  the  utmost  good 
faith,  strictly  complying  with  the  law  in  its  every  detail.  Indeed, 
some  of  these  men  have  actually  lived  upon  their  claims  during  all 
these  weary  years  of  waiting.  Such  applications  there  are  which 
have  been  pending  for  six  years  and  more,  and  yet  no  action  has 
been  taken,  no  charges  filed,  and  in  some  cases  not  even  the  slightest 
suggestion  of  an  irregularity  has  been  made,  although  during  all 
of  these  years  a  score  of  field  agents  have  been  at  work,  interview- 
ing claimants  and  other  persons  who  might  have  some  knowledge, 
and  employing  every  means  of  a  skilled  detective  force  to  ascertain 
possible  fraud  or  irregularities.  Evidently  the  land  department  is 
not  disposed  to  grant  patents  for  these  claims.  Indeed  the  Secre- 


"DAY-IN-COURT"  FOR  ALASKA  COAL  CLAIMANTS.      189 

tary  of  the  Interior  stated  before  the  Committees  of  Congress  last 
spring  that,  upon  the  records  in  his  department,  he  would  not 
patent  a  single  coal  claim  in  Alaska.  Those  records  are  made  up 
largely  of  the  secret  reports  by  the  bureau's  detective  system.  These 
reports,  though  kept  a  secret  from  the  claimants,  have  influenced 
the  Secretary  to  make  this  sweeping  statement  against  all  coal  claims 
in  Alaska,  and  yet,  under  the  existing  law,  these  claimants  can 
appeal  only  to  that  Secretary  for  justice. 

This  situation  is  the  more  aggravating  because  most  of  these 
particular  claimants  have  agreed  to  accept  patents  under  the  limi- 
tations of  the  Act  of  May  28th,  1908.  This  act  applies  only  to  the 
claims  located  prior  to  November  I2th,  1906,  the  date  of  the  Presi- 
dent's withdrawal.  This  later  act  permits  the  consolidation  of  such 
claims  in  groups  of  not  to  exceed  2,560  acres,  but  imposes  severe 
conditions,  as  will  be  noted  by  Section  3  of  the  Act  of  1908,  which 
reads  as  follows: 

"That  if  any  of  the  lands  or  deposits  purchased  under  the  pro- 
visions of  this  act  shall  be  owned,  leased,  trusteed,  possessed,  or 
controlled  by  any  device  permanently,  temporarily,  directly,  indi- 
rectly, tacitly,  or  in  any  manner  whatsoever  so  that  they  form  part 
of,  or  in  any  way  effect  any  combination,  or  are  in  any  wise  con- 
trolled by  any  combination  in  the  form  of  an  unlawful  trust,  or 
form  the  subject  of  any  contract  or  conspiracy  in  restraint  of  trade 
in  the  mining  or  selling  of  coal,  or  of  any  holding  of  such  lands  by 
any  individual,  partnership,  association,  corporation,  mortgage, 
stock  ownership,  or  control,  in  excess  of  two  thousand  five  hundred 
and  sixty  acres  in  the  district  of  Alaska,  the  title  thereto  shall  be 
forfeited  to  the  United  States  by  proceedings  instituted  by  the  At- 
orney  General  of  the  United  States  in  the  courts  for  that  purpose." 

This  is  certainly  the  most  stringent  anti-monopoly  clause  pos- 
sible to  frame  in  the  English  language.  But  more  than  four  years 
more  have  passed  since  this  drastic  legislation,  and  still  no  action 
has  been  taken.  The  claimants  are  compelled  to  wait  until  the  offi- 
cials in  the  bureau  known  as  the  General  Land  Office  see  fit  to 
act,  and  even  then  no  court  has  jurisdiction  to  grant  them  a  hear- 
ing. It  is  urged  there  are  many  fraudulent  entries  which  should 
be  cancelled.  Even  so,  should  not  those  claimants  be  accorded  the 
same  trial  that  is  given  to  murderers  and  rapists?  Are  we  afraid 
to  trust  those  cases  to  the  courts  which  protect  us  from  thugs  and 
counterfeiters  ? 

Prof.  Ralph  S.  Tarr,  in  his  splendid  article  on  the  "The 
Alaska  Problem,"  published  in  the  North  American  Review,  says: 


190          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

"The  greater  number  of  locations  have  been  made  in  good  faith 
and  in  the  light  that  the  prospector  had  concerning  land  laws. 
There  is  no  class  of  men  who  are  more  frank  or  honest  in  their 
dealings  than  these  brave,  hardy  men.  They  wish  to  live  up  to  the 
law,  and  the  vast  majority  of  them  have  thought  they  were  doing 
so  and  still  think  so.  They  feel  aggrieved.  Granting  that  some 
have  been  deliberately  fraudulent  and  that  others  have  been  guilty 
of  evading  the  law,  with  or  without  realizing  it,  there  remain 
others  who  have  done  no  wrong  either  intentional  or  unintentional ; 
and  yet  these  are  suffering  equally  with  the  most  guilty  as  a  result 
of  our  hasty,  unconsidered  action.  Men  who  have  spent  ten  or  a 
dozen  years  of  the  best  period  of  their  lives,  discovering  and  prov- 
ing the  value  of  these  coal-beds,  buoyed  by  the  hope  and  expecta- 
tion of  ultimately  reaping  a  return  either  for  themselves  or  their 
families,  find  their  hopes  dashed,  their  energies  wasted,  and  their 
time  and  money  gone  to  no  purpose.  No,  not  that,  for  they  have 
discovered,  developed,  and  proved  the  value  of  these  'priceless  pos- 
sessions of  the  sovereign  people  of  the  United  States.'  Their  re- 
ward is  abuse,  and  the  brand  of  'thief.'  It  is  not  right,  and  no  ac- 
tion of  the  United  States  Government  will  be  right  that  does  not 
involve  adequate  compensation  for  these  pioneers/' 

We  are  urging  simple  justice  for  the  honest  coal  claimants, 
many  of  whom  have  invested  their  all  of  time  and  money,  labor  and 
sacrifice,  enterprise  and  energy  in  trusting  confidence  that  the  law 
of  1904  would  be  fairly  executed.  Those  pioneers  are  indeed  the 
same  honest,  rugged,  sturdy  men  and  women  who  conquered  the 
West,  who  opened  the  coal  fields  and  iron  mines  of  Pennsylvania 
and  Ohio,  who  converted  the  prairies  of  the  Mississippi  Valley  into 
a  blooming  garden,  who  have  conquered  the  plains  and  tunneled  the 
mountains  and  made  the  great  Northwest  yield  up  its  treasure  of 
mine  and  field.  These  same  men  have  gone  into  Alaska,  and  en- 
dured the  hardships  and  privations  of  the  Northland,  in  an  effort 
to  open  up  that  country  in  whose  resources  they  had  such  abundant 
confidence.  Some  of  them  found  their  last  resting  place  beneath 
the  Northern  Lights.  Many  of  them  have  left  Alaska — disap- 
pointed and  disheartened,  broken  in  health  and  spirit,  while  others 
still  remain  in  the  desperate  struggle,  some  of  them  simply  because 
they  are  unable  to  get  away. 

And  why  this  deplorable  situation?  Is  it  because  Congress 
willed  it,  and  has  so  legislated?  No,  the  bureaus  have  legislated. 
The  whole  policy  of  the  land  department  has  been  changed  in  re- 
cent years.  The  bureaucrats  have  construed  the  law  to  mean  just 


"DAY-IN-COURT"  FOR  ALASKA  COAL  CLAIMANTS.      191 

what  they  think  it  should  mean.  For  instance,  the  department  has 
been  called  upon  for  nearly  forty  years  to  declare  what  is  necessary 
to  constitute  opening  and  improving  a  coal  mine  under  the  Act  of 
1873,  in  order  to  give  a  preference  right  to  purchase.  They  gave 
these  words  a  reasonable  construction.  As  late  as  1900  the  Secre- 
tary of  the  Interior,  in  the  case  of  Reed  vs.  Nelson  (29  L.  D.  615), 
opinion  written  by  Judge  Van  Devanter,  then  Assistant  Attorney 
General,  but  now  on  the  Supreme  bench,  held  that  Nelson  had 
"opened  and  improved"  a  coal  mine  within  the  meaning  of  that  act 
when  the  record  showed  that  "an  open  cut  was  run  a  short  distance 
and  then  a  shaft  sunk,  disclosing  a  4-foot  vein  of  coal."  Now  the 
Alaska  law  of  1904  uses  the  same  words,  and  provides  that  any 
person  "who  shall  have  opened  or  improved  a  coal  mine  or  coal 
mines  on  any  of  the  unsurveyed  public  lands  of  the  United  States 
in  Alaska  may  locate"  the  same  as  a  coal  mine.  It  is  a  universal 
rule  of  construction  that  when  an  older  law  is  repeated  in  a  later 
act,  the  legislature  is  presumed  to  have  adopted  the  construction 
placed  upon  it.  So  when  Congress  repeated  those  words  in  the 
Alaska  law  of  1904,  it  did  so  presuming  they  would  be  given  the 
same  construction  they  had  received  for  thirty-one  years  in  the  coal 
land  law  of  1873.  But  m  tne  one  Alaska  case  which  has  actually 
come  before  the  Department  for  consideration  they  have  held  that 
a  tunnel  driven  225  feet  into  the  mountain  side,  along  a  vein  of  coal, 
with  ii  cross-cuts  showing  the  vein  to  be  more  than  20  feet  in 
width,  is  not  "opening  or  improving"  a  coal  mine,  although  several 
hundred  tons  of  coal  per  day  might  immediately  be  taken  from  that 
same  tunnel.  The  Department  contends  that  this  was  not  opening 
or  improving  a  mine  but  merely  prospecting.  They  evidently  do 
not  believe  that  a  mine  is  a  deposit  of  minerals  which  can  be  worked 
at  a  profit,  but  insist  on  regarding  the  tunnel,  shafts  and  other 
workings  as  the  mine,  rather  than  the  minerals  thus  explored,  and 
that  255  feet  of  tunnel,  attaining  a  depth  of  several  hundred  feet 
with  ii  cross-cuts,  and  a  body  of  coal  available  sufficient  to  yield 
an  immediate  output  of  several  hundred  tons  per  day,  is  not  suffi- 
cient workings  to  constitute  a  mine.  They  regard  the  workings  as 
the  mine  rather  than  the  minerals,  and  I  suppose  those  learned  bu- 
reaucrats will  set  a  high  value  upon  the  splendidly  developed  mine, 
with  a  complete  system  of  workings,  from  which  every  bit  of  coal 
has  been  extracted.  That  is  the  logical  result  of  their  interpreta- 
tion, if  it  is  the  workings  which  constitute  the  mine  rather  than  the 
minerals.  This  Alaska  decision  ignores  the  case  of  Reed  v.  Nelson, 
not  even  referring  to  it.  Its  logic  is  the  more  ridiculous  when  you 


192          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

consider  the  fact  that  the  law  provides  that  such  coal  mine  must 
be  "opened  or  improved''  before  a  location  can  even  be  made.  In 
other  words,  the  department  tells  you  that  you  must  have  a  com- 
pletely equipped  coal  mine,  with  tunnels,  shafts,  up-raises,  stopes 
and  cross-cuts,  mining  machinery,  cars  and  equipment,  yes,  and  you 
must  have  all  these  before  you  can  even  locate  a  coal  mine.  And 
yet  that  same  Land  Department  will  not  permit  one  to  ship  a  pound 
of  coal  until  after  the  patent  proceedings  have  been  completed  and 
the  purchase  price  paid. 

Two  attempts  were  made  to  mine  coal  in  Alaska,  but  the  gov- 
ernment fined  one  man  for  selling  coal  to  its  own  revenue  cutters 
from  an  old  Russian  mine  at  Port  Graham,  and  the  Chief  of  the 
Field  Division  actually  closed  down  in  1908  the  only  coal  mine  op- 
erating in  the  Katalla  fields,  simply  because  the  patent  proceedings 
were  not  then  completed.  The  same  were  completed  that  same 
year  and  the  purchase  price  paid,  but  as  yet  no  action  has  been 
taken  upon  that  entry,  not  even  charges  filed  against  it — simply 
nothing  done.  The  net  results  to  date  are  that  one  claimant  was 
fined  for  mining  coal,  another  stopped  although  he  had  his  ma- 
chinery on  the  ground  and  a  contract  made  for  his  output.  This 
was  in  1908,  but  in  1912  the  department  cancelled  several  other  lo- 
cations because  the  claimants  had  not  mined  coal. 

In  the  light  of  this  experience,  can  you  blame  these  Alaska  coal 
claimants  for  doubting  the  fairness  of  the  Land  Department,  and 
the  impartiality  of  a  Secretary  of  the  Interior  who  has  already  made 
up  his  mind  that  every  one  of  these  claims  should  be  cancelled  ?  Is 
their  request  unreasonable  for  an  act  of  Congress  permitting  them 
to  bring  suit  in  the  courts  of  Alaska  to  determine  the  validity  of 
their  respective  claims?  There  is  no  question  involved  as  to  the 
character  of  the  land.  It  has  already  been  classified  by  the  govern- 
ment as  coal  land.  The  department  should  not  object  to  presenting 
whatever  evidence  it  has  accumulated  against  these  claimants,  as  a 
result  of  its  eight  years  of  investigation,  for  the  judgment  of  the 
courts  in  Alaska,  subject  to  the  right  of  appeal  to  the  Circuit  Court 
of  Appeals  and  the  Supreme  Court  of  the  United  States. 

Surely,  under  all  the  circumstances,  every  sense  of  justice  de- 
mands that  the  Alaska  coal  claimants  be  given  relief  from  the  ar- 
bitrary  and  hostile  attitude  of  the  Interior  Department.  If  every 
claim  is  fraudulent,  even  then  they  are  entitled  to  a  fair  trial, 
though  we  may  be  sure  every  claim  will  be  cancelled  by  the  courts, 
without  half  the  delay  which  has  already  occurred.  If  only  one 


"DAY-IN-COURT"  FOR  ALASKA  COAL  CLAIMANTS.      193 

honest  coal  claimant  be  found  in  all  the  Alaska  locations,  justice 
demands  that  he  be  given  a  fair  opportunity  in  the  courts. 

It  will  not  be  an  adequate  remedy  to  permit  an  appeal  from 
the  Secretary  of  the  Interior  to  the  courts  of  the  District  of  Colum- 
bia. Such  an  appeal  could  only  be  taken  upon  questions  of  law.  It 
would  compel  claimants  to  wait  until  the  Land  Department  sees 
fit  to  act.  Some  of  these  claimants  have  already  waited  for  six 
years  without  even  a  charge  filed  against  their  entries.  An  appeal 
to  the  courts  would  still  leave  the  decision  of  the  facts  with  those 
who  investigate  and  prosecute.  Their  decision  upon  the  facts  would 
still  be  influenced  by  their  star-chamber  investigation,  and  there 
could  be  no  review  of  such  decision  as  to  the  facts  upon  any  appeal 
from  the  Secretary  of  the  Interior.  The  practice  would  be  still 
more  tedious,  still  more  cumbersome,  and  still  more  expensive  than 
the  present  tedious,  cumbersome  and  expensive  procedure.  The 
American  people  insist  that  every  man  shall  have  his  "day-in-court" 
upon  any  charge  asserted  against  him  involving  his  life,  liberty  or 
property.  The  Alaska  coal  claimants  ask  just  that  much  and  noth- 
ing more. 


Law  Enforcement  for  Alaska. 

GEORGE  E.  BALDWIN, 
VALDEZ,  ALASKA. 


We  Alaskans,  who  have  been  coming  to  the  States  for  the  last 
several  years  and  relating  our  grievances  to  the  Mining  Congress, 
to  various  conventions  and  commercial  bodies,  are  beginning  to  feel 
that  Alaska  and  its  troubles  must  be  more  or  less  of  a  joke  and  that 
our  complaints  come  near  being  "chestnuts"  to  the  people  who  have 
to  listen  to  them. 

In  a  small  measure  our  troubles  have  been  relieved  recently  by 
the  passage,  by  Congress,  of  an  Act  creating  a  Territorial  Legis- 
lature for  Alaska,  conferring  upon  it  limited  legislative  powers. 
These  powers,  if  properly  exercised,  which  they  undoubtedly  will 
be,  will  in  a  great  measure  relieve  us  of  some  of  our  minor  difficul- 
ties. For  instance — I  am  sure  that  the  Legislature  will  see  to  it 
that  the  present  law,  under  which  brown  bear  are  protected  at  gov- 
ernment expense  and  the  only  relief  for  destitute  prospectors,  is 
to  have  them  arrested  as  vagrants  and  put  in  jail,  will  be  remedied. 

One  of  the  difficulties  with  which  our  Legislature  will  have  to 
contend  comes  from  the  fact  that  we  have  a  very  limited  amount 
of  property  to  tax.  The  paramount  title  to  approximately  99.98 
per  cent  of  the  land  of  Alaska  rests  in  the  United  States.  Less  than 
two-hundredths  of  one  per  cent  is  privately  owned.  Less  than 
100,000  acres  of  land  in  Alaska  has  been  patented  by  the  govern- 
ment of  the  United  States  to  private  individuals. 

•  One  of  the  great  bug-a-boos  and  cries  about  Alaska  is — that 
it  has  been,  and  is  being,  "gobbled  up"  by  the  so-called  Morgan- 
Guggenheim  Syndicate.  I  want  to  make  this  statement — stating  it 
as  an  absolute  fact— that  that  Syndicate  and  all  its  subsidiary  com- 
panies own  in  fee  simple  less  than  5,000  acres  of  land  in  Alaska, 
both  mineral  and  non-mineral.  Many  ranchers  in  Eastern  Wash- 
ington, who  are  not  known  by  reputation  twenty  miles  away  from 
where  they  live,  own  larger  areas  of  land  than  this. 

The  Syndicate  have  never  had,  so  far  as  I  know,  any  serious 
trouble  in  securing  patents  to  mineral  or  non-mineral  land  they  de- 
sired, as  they  purchased  nearly  all  they  hold  from  individuals  and 
corporations  who  had  secured  titles  before  the  era  of  conservation. 


LAW  ENFORCEMENT  FOR  ALASKA.  195 

They  are  not  now,  SQ  far  as  I  know,  applicants  for  title  to  any  land 
in  the  territory. 

Alaska  is  decreasing  in  population.  Its  trade  with  the  United 
States  is  decreasing.  Why? 

About  six  years  ago,  or  more,  a  propaganda  was  started  by 
certain  interested  people  in  the  east,  some  of  them  well  meaning,  no 
doubt,  but  others  cold-blooded,  designing  place-seekers  and  power- 
seekers,  putting  up  the  ridiculous  and  foolish  theory  that  our  re- 
sources were  rapidly  approaching  a  point  of  exhaustion.  Public 
money  was  used,  the  press  was  subsidized,  the  muck-raking  maga- 
zines aided  the  campaign  because  it  furnished  sensational  literature, 
and  at  last  conservation  was  born — an  idea  totally  at  war  with  every 
economic  fact,  and  a  theory  that  will  not  stand  the  test  of  being 
examined  and  tested. 

Despite  the  fact  that  at  that  very  time  the  statistics  of  the  Geo- 
logical Survey,  compiled  and  on  file  in  Washington,  showed  6,000 
years'  supply  of  coal  actually  in  sight  and  1,340  years'  supply  of 
iron  ore  actually  in  sight,  the  people  were  gravely  told  that  these 
two  necessities  would  both  be  exhausted  in  something  like  a  cen- 
tury. As  a  result  of  this,  large  areas  in  the  west,  and  practically  all 
of  Alaska,  were  to  be  developed  under  this  so-called  "conservation" 
theory. 

If  any  person  had  seriously  proposed  that  large  areas  in  the 
eastern  states  be  depopulated  and  the  resources  there  saved  for  fu- 
ture generations,  they  would  have  been  considered  candidates  for 
the  lunatic  asylum ;  yet  no  concern  is  evidenced  by  these  "conserva- 
tionists" about  the  resources  of  the  more  densely  populated  por- 
tions of  the  country,  but  all  their  time  and  energy  were  directed 
toward  seeing  that  the  resources  in  the  partly  settled  sections  were 
absolutely  locked  up,  particularly  in  Alaska,  where  there  is  only 
one  human  being  for  every  eleven  square  miles  of  territory. 

The  whole  scheme  of  conservation,  as  it  has  been  carried  on 
to  date,  amounts  to  this — that  the  land  must  be  kept  in  public  own- 
ership, and  that  every  artifice  must  be  resorted  to  by  the  government 
to  retard  applicants  from  securing  patents  for  public  lands. 

Communism  may  have  its  advantages  over  individualism,  but 
the  history  of  the  American  people  does  not  show  it.  The  first 
settlement  of  English-speaking  people  in  the  New  World,  made 
303  years  ago,  was  a  communistic  settlement.  At  the  end  of  a  year, 
the  colonists  were  standing  on  the  banks  of  the  James  River  anx- 
iously awaiting  the  arrival  of  a  vessel  from  England  to  bring  them 
food  to  keep  them  from  starving  and  take  them  back  to  their  old 


196          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

homes.  The  new  Governor  instituted  a  system  of  individualism, 
giving  to  each  colonist  a  tract  of  land  and  granting  to  him  all  of  the 
products  therefrom.  From  that  day  to  this  there  has  never  been  a 
shortage  of  food  in  Virginia. 

If  communism  and  common  ownership  of  land  would  not  suc- 
ceed in  that  mild  and  equable  climate,  where  the  soil  was  fertile, 
woods  full  of  game,  the  rivers  full  of  fish,  oysters,  clams  and  crabs, 
how  can  we  expect  it  to  succeed  on  the  inhospitable  shores  of 
Alaska?  Yet  that  seems  to  be  the  policy — and  the  carrying  out  of 
that  policy  is  what  we  are  complaining  of  today. 

Congress  has  never  given  the  slightest  evidence  that  it  intended 
to  treat  the  pioneers  of  Alaska  any  differently  than  it  had  treated 
the  pioneers  of  any  other  territories.  Alaska  has  every  law  that  has 
been  passed  for  the  development  of  the  territories  of  the  west,  and 
four  more,  but  what  we  are  demanding  is  law  enforcement  and  not 
law  enactment. 

The  attitude  of  the  Bureaus  toward  Alaska,  particularly  the 
Bureau  of  Forestry  and  the  General  Land  Office,  is  what  we  mostly 
complain  of.  Every  restriction  that  can  be  thrown  upon  the  devel- 
opment of  our  territory;  every  obstacle  that  can  be  placed  in  the 
path  of  our  development;  every  hindrance  that  can  be  imposed 
upon  our  progress — is  faithfully  attended  to  by  these  two  Bureaus. 

The  Mining  Law  of  1873,  as  passed  by  Congress  for  the  States, 
was  extended  to  Alaska  over  a  generation  ago.  This  law  provided 
a  speedy,  simple  and  inexpensive  method  by  which  the  discoverer 
or  his  assignee  could  obtain  full  and  free  title  to  his  discovery.  By 
a  series  of  rulings,  and  exacting  more  and  more  of  the  locater,  the 
Department  has,  and  is,  practically  nullifying  the  intent  of  the  Con- 
gress that  passed  the  law.  This  is  being  done,  we  believe,  with  the 
end  in  view  of  seeing  to  it  that  as  little  of  the  land  of  Alaska  as 
possible  shall  pass  to  private  ownership,  and  that  it  shall  remain  in 
the  hands  of  the  government  and  to  be  worked  by  our  citizens  as 
tenants  and  lessees. 

The  ignorance  of  our  affairs  manifested  by  those  in  charge  of 
executing  the  laws  is  almost  past  comprehension.  To  illustrate  this 
— I  wish  to  relate  an  incident  that  occurred  a  year  ago  last  August, 
during  the  visit  of  the  Secretary  of  the  Interior  to  our  Territory. 
After  having  been  entertained  by  the  people  of  Cordova,  he  was 
taken  in  a  special  train  on  a  trip  over  the  Copper  River  Railroad. 
When  lunch  time  came  the  party  went  into  the  dining  car  to  have 
lunch.  The  dining  car  was  pretty  well  filled  up,  and  in  the  course 
of  the  conversation  some  of  the  citizens  made  some  reference  to 


LAW  ENFORCEMENT  FOR  ALASKA.  197 

the  hardships  of  the  pioneers,  who,  fourteen  years  before,  had 
toiled  up  that  river;  how  they  had  started  from  the  present  site  of 
Cordova  early  in  February;  pulled  their  sleds  by  the  neck,  as  we 
say  up  there,  as  they  had  neither  horses  nor  dogs;  and  when  the 
river  broke  up  and  the  ice  went  out,  whipsawed  lumber,  built  boats 
and  pulled  them  up  against  the  current;  and  by  September  had 
reached  a  point  perhaps  100  miles  inland ;  of  their  hardships  in  the 
way  of  being  short  of  various  supplies  and  some  of  them  necessi- 
ties ;  of  their  fighting  the  mosquitoes  and  gnats ;  and  of  the  almost 
total  failure  of  all  of  them. 

The  Secretary  expressed  himself  very  freely — that  the  pros- 
pector did  not  deserve  any  credit  and  that  that  kind  of  talk  made 
him  rather  tired;  that  the  Geological  Survey  had  gone  ahead  and 
shown  the  prospectors  where  to  set  their  stakes. 

What  can  we  hope  when  the  absolute  decision  largely  as  to 
whether  we  are  to  progress  or  retrograde  is  in  the  hands  of  a  man 
so  hopelessly  ignorant  and  prejudiced  as  that? 

To  relate  a  few  instances  of  the  injustice  perpetrated  upon  the 
people  by  these  Bureaus  would  be  to  tell  you  people  some  things 
that  you  would  hardly  believe,  except  those  of  you  who  have  had 
nearly  the  same  conditions  confronting  you  in  the  States. 

The  town  of  Seward  received  a  very  serious  setback  when  the 
railroad  projected  from  that  point  to  the  Matanuska  coal  fields  sus- 
pended operations  in  1906  on  account  of  the  government's  attitude 
toward  the  granting  of  patents  to  coal  lands  in  this  field.  The  peo- 
ple there,  those  of  them  who  are  left,  have  made  a  brave  struggle 
and  are  making  one,  for  which  they  should  receive  every  encourage- 
ment. By  common  agreement,  the  citizens  burned  wood  instead  of 
coal,  despite  the  fact  that  coal  was  a  little  cheaper.  Using  the  wood 
with  which  the  town  was  surrounded  kept  the  money  in  the  com- 
munity which  otherwise  would  have  been  sent  out  to  British  Colum- 
bia for  coal. 

Adjoining  the  townsite  of  Seward  are  a  number  of  homesteads 
partially  timbered.  These  homesteaders,  some  of  them  on  account 
of  lack  of  means,  have  been  unable  to  push  their  claims  to  patent. 
Some  of  them,  while  clearing  up  their  land,  cut  the  timber  into 
cordwood,  sold  it  to  a  firm  in  Seward,  engaged  in  the  draying,  wood 
and  coal  business,  at  an  average  price  of  $4.00  a  cord.  This  dray- 
ing  firm  was  delivering  the  wood  to  the  people  of  Seward  at  $5.00 
a  cord.  Along  comes  a  special  agent  of  the  Land  Office,  in  the 
name  of  the  United  States  seizes  this  wood,  advertises  it  for  sale 
at  public  auction  to  satisfy  a  government  claim  of  $5.50  a  cord 


198          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

stumpage  on  the  wood,  and  proceeds  to  prosecute  as  criminals  the 
members  of  this  draying  firm.  Had  these  homesteaders,  in  clear- 
ing up  their  land  to  raise  produce,  piled  the  logs  up  in  a  pile  and 
burned  them,  this  would  have  been  conservation,  but  because  they 
cut  them  into  cordwood  and  sold  it  to  their  neighbors,  in  order 
that  they,  the  homesteaders,  might  support  their  families,  they  be- 
came criminals. 

To  speak  of  men  responsible  for  this  state  of  affairs,  without 
using  language  too  strong  for  publication,  is  beyond  my  power.  I 
will  simply  say — borrowing  from  the  late  Horace  J.  Stevens — that 
they  are  "political  economists  of  the  Stone  Age  and  first  cousins  in 
mental  capacity  to  the  Troglydites." 

One  of  the  problems  of  our  Territory  is  to  secure  the  invest- 
ment of  capital.  The  greatest  obstacle  to  the  investment  of  capital 
in  Alaska  today  is  the  uncertainty  as  to  title  to  land  still  in  the 
possession  of  the  government.  No  single  thing,  no  combination  of 
things,  has  so  impaired  the  confidence  of  capital  in  Alaskan  invest- 
ment as  the  attitude  of  the  government  of  the  United  States  toward 
applicants  for  title  to  land. 

Of  course,  it  is  easy  enough  to  complain  and  to  find  fault,  and 
sometimes  difficult  to  suggest  remedy,  but  in  our  case  the  remedy  is 
surprisingly  simple.  The  same  treatment  for  Alaska  as  has  been 
accorded  the  other  Territories  of  the  West,  the  enforcement  of  the 
laws  which  stand  upon  the  statute  books,  with  a  spirit  of  fairness 
and  justice  to  all,  encouraging  the  prospector,  the  homesteader,  the 
investor,  to  believe  that,  whatever  may  happen,  he  will  not  be  con- 
sidered a  criminal  until  he  has  been  proven  to  be  one. 

One  man  in  particular,  whose  name  no  true  Alaskan  speaks 
except  to  curse,  has  been  unduly  prominent  in  the  discussion  of 
Alaskan  affairs  throughout  the  Nation.  By  the  aid  of  an  unearned 
fortune  he  has  had  abundance  of  time  and  money  to  spend  attend- 
ing to  other  people's  business.  And  how  has  he  attended  to  it,  as 
far  as  Alaska  is  concerned?  He  has  attended  to  it  like  Attila  the 
Hun  attended  to  the  statuary  and  art  treasures  of  the  Eternal  City 
— by  destroying  it.  And  I  have  no  doubt  that  the  Huns  and  Van- 
dals who  sacked  Rome  were  fully  as  appreciative  of  the  beauties  of 
that  city  as  Mr.  Pinchot  is  of  the  hardships  and  trials  of  pioneer 
life. 

He  has  been  to  Alaska,  it  is  true,  but  he  knows  about  as  much 
about  it  as  an  inhabitant  of  Mars  would  know  about  the  State  of 
Washington  if  he  could  look  at  one  acre  of  sage  brush  out  here  in 
the  middle  of  the  State.  He  started  for  the  Matanuska  coal  fields. 


LAW  ENFORCEMENT  FOR  ALASKA.  199 

but  played  out,  turned  around  and  came  back.  Though  he  started 
out  with  the  avowed  determination  to  personally  inspect  them  and 
was  on  a  trail  one  legged  men  have  packed  supplies  over  on  their 
backs.  Would  Alaska  have  ever  amounted  to  much  if  its  pioneers 
had  been  as  infirm  of  purpose  as  he? 

On  his  return  he  published  an  article  supposed  to  be  the  last 
word  upon  the  subject  of  Alaskan  Development,  in  which  he  pro- 
mulgated the  absurd,  preposterous  and  childish  scheme  of  Alaska 
coal  being  opened  up  in  five-acre  tracts.  Verily  "In  the  presence 
of  human  stupidity  the  gods  stand  helpless." 

The  conservationists  are  to  be  congratulated  for  what  they 
have  done  for  Alaska.  They  have  discouraged  its  pioneers,  de- 
spoiled its  investors,  depleted  its  population,  but  conserved  its  re- 
sources. We  Alaskans  are  hoping  that  a  brighter  day  is  coming 
and  if  it  does  not  come  soon  it  will  do  few  of  us  any  good  when  it 
does  come.  It  is  a  significant  fact  that  when  the  Panama  Canal  be- 
came a  certainty  the  howl  about  Alaska  coal  broke  forth.  Some  of 
our  Alaskans  do  not  hesitate  to  charge  that  certain  interests  that 
expected  to  supply  coal  to  the  Pacific  Coast  upon  the  completion  of 
the  Panama  Canal  were,  to  say  the  least,  not  unfriendly  to  this  con- 
servation clamor.  Whether  Alaska  is  to  progress  or  not  will  soon 
be  decided,  for  it  certainly  cannot  progress  under  present  conditions 
nor  under  any  conditions  which  are  offered  or  have  been  offered  b> 
the  last  two  administrations  in  lieu  of  the  existing  laws.  I  can 
only  in  closing  repeat,  that  we,  the  people  of  Alaska,  have  a  right 
to  demand  the  same  laws  be  enforced  as  were  provided  for  the 
people  of  the  other  western  territories. 


Transportation  Facilities  in  Alaska. 

DUNCAN  M.  STEWART, 
SEWARD,  ALASKA. 


Mr.  Chairman,  Fellow  Members  of  the  American  Mining  Congress, 

and  Gentlemen: 

It  is  my  privilege  to  appear  before  you  on  this  occasion  as  the 
"accredited  representative"  of  the  people  of  the  town  of  Seward, 
Alaska,  and  the  country  contiguous  thereto,  in  accordance  with  a 
certain  resolution  recently  passed  by  them  and  which  reads  as  fol- 
lows: 

"THEREFORE  BE  IT  RESOLVED,  That  the  sense  of  this 
mass  meeting  unanimously  expressed  is  that  D.  M.  Stewart  be,  and 
is  hereby  declared  the  accredited  representative  of  the  people  of  the 
Town  of  Seward  and  the  country  contiguous  thereto,  and  is  hereby 
instructed  to  use  every  honest  endeavor  before  Congressional  com- 
mittees at  Washington,  D.  C,  before  the  American  Mining  Con- 
gress, the  Chamber  of  Commerce  of  the  United  States  of  America, 
and  other  bodies,  to  secure  the  proposed  legislation." 

You  will  observe  that  the  people  of  this  district  specifically 
mentioned  the  American  Mining  Congress  in  their  resolution,  and 
in  the  achievement  of  legislation  that  will  develop  the  resources  and 
advance  the  interests  of  the  people  of  Alaska  in  general  they  have 
ranked  this  body  as  second  only  to  the  Congress  of  the  United 
States.  The  people  of  Seward,  and  I  think  of  all  Alaska  for  that 
matter,  recognize  the  weight  that  attaches  to  the  deliberations  of 
the  American  Mining  Congress  and  the  importance  of  securing  the 
sympathy,  assistance  and  support  of  this  influential  body  in  the 
accomplishment  of  constructive  legislation  and  the  promotion  of 
any  sound  policy  of  development.  The  fact  that  these  good  people 
at  a  mass  meeting — where  every  rank  of  business  and  professional 
life  was  represented,  where  the  prospector  fresh  from  the  hills 
rubbed  shoulders  with  the  bank  president,  where  the  leaders  of  the 
church  and  of  the  saloon  sat  cheek  by  jowl,  where  the  press,  the  bar 
and  the  dignitaries  of  the  Town  Council  smoked  the  pipe  of  peace- 
ful unanimity — did  recognize  the  importance  of  this  Congress  and 


TRANSPORTATION   FACILITIES  IN  ALASKA.  201 

did  specifically  instruct  their  delegate  to  place  their  views  before  it, 
is  sufficient  testimony  to  the  intelligence  and  sound  common  sense 
of  that  community  without  any  further  encomium,  without  even 
calling  attention  to  the  selection  of  their  delegate! 

On  behalf  of  the  people  of  Seward  and  of  the  Kenai  Peninsula 
therefore  I  now  have  the  honor  to  thank  you  for  having  given  their 
spokesman  a  place  on  your  program  today,  and  with  all  the  sincerity 
within  me  to  thank  the  American  Mining  Congress  for  the  interest 
it  has  taken  in  Alaska  and  Alaskan  matters  and  for  the  efforts  it 
has  made — during  the  past  year  in  particular — to  procure  increased 
transportation  facilities  for  us  and  to  procure  legislation  that  would 
release  our  coal  from  the  intolerable  conditions  which  have  kept  it 
locked  up  for  the  past  seven  years. 

I  would  not  be  performing  the  duty  that  devolves  upon  me  on 
this  occasion  if  I  did  not  read  to  you  the  full  text  of  the  resolutions 
passed  by  the  good  people  whom  I  represent  here  today.  They  are 
as  follows: 

"WHEREAS,  The  people  of  the  town  of  Seward  and  adjoining 
country  continue  to  suffer  from  hopelessly  inadequate  transporta- 
tion facilities  and  from  lack  of  proper  means  of  communication 
with  the  great  interior  country  behind  us ;  and 

"WHEREAS,  There  is  absolutely  no  railroad  transportation 
from  this  port  during  seven  months  of  the  year,  although  a  railway 
could  be  maintained  and  operated  at  ordinary  cost  throughout  the 
entire  year ;  and 

"WHEREAS,  There  is  urgent  need  for  the  construction  of  a 
railroad  that  will  open  up  the  rich  agricultural  valleys  of  the  in- 
terior and  that  will  enable  the  coal  of  Alaska  to  be  mined  and 
transported  to  market;  and 

"WHEREAS,  We  are  now  forced  to  buy  coal  imported  from 
British  Columbia  and  Japan  at  exorbitant  rates,  namely  $17.50  per 
ton  at  Seward,  when  we  are  within  150  miles  of  bituminous  and  an- 
thracite coal  of  the  highest  quality,  which,  if  we  were  allowed  to 
mine,  could  be  sold  here  at  a  price  not  to  exceed  $5.00  or  $6.00  per 
ton ;  now  therefore,  be  it 

"RESOLVED,  That  the  honorable  body,  the  Congress  of  the 
United  States  of  America,  be  and  is  hereby  requested  to  cause  the 
immediate  construction  of  a  trunk  line  of  railroad  from  the  Pacific 
Coast  to  the  Yukon  River,  having  its  terminus  at  Seward  on  Resur- 
rection Bay ;  be  it  further 

"RESOLVED,  That  we  demand  the  immediate  opening  of  the 


202          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

coal  fields  of  Alaska  to  entry  on  a  leasing  or  royalty  basis,  with  due 
protection  to  those  who  have  already  located  coal  claims  honestly 
and  according  to  law ;  and  be  it  further 

"RESOLVED,  That  copies  of  these  resolutions  be  sent  to  the 
towns  on  the  coast  and  in  the  interior  of  Alaska  and  their  endorse- 
ment and  co-operation  requested. 

"Ordered  drawn,  passed  and  approved  in  mass  meeting  duly 
assembled  upon  published  call  and  notice  this  I7th  day  of  October, 
1912,  at  Seward,  Alaska. 

"(Signed)  FRANK   L.    BALLAINE,    President. 

L.  H.  PEDERSEN,  Secretary." 

As  there  are  other  men  present  from  Alaska,  who  may  have 
different  views  on  the  subject  of  the  ocean  terminus  of  any  proposed 
trunk  line  Government  railroad,  I  naturally  shrink  from  advocating 
Seward  as  the  ideal  location  for  such  terminus  at  this  gathering;  I 
feel  that  the  American  Mining  Congress  has  no  part  in  the  rivalry 
of  Alaskan  coast  towns  for  that  distinction;  that  it  should  not  be 
made  a  party  to  the  claims  of  any  one  section  or  community,  and 
that  therefore  this  is  not  the  place  to  make  a  feature  of  that  portion 
of  the  Seward  resolution.  I  am  sure  my  friends  from  Valdez  and 
other  aspiring  cities  will  agree  with  me,  and  that  they  will  appre- 
ciate the  motive  which  actuates  this  expression. 

I  venture  to  state  that  there  is  not  a  single  town  or  village  com- 
posed of  white  people  throughout  the  length  and  breadth  of  Alaska 
that  would  not  pass  resolutions  similar  to  those  passed  by  the  people 
of  Seward,  so  far  as  the  general  principles  therein  expressed  are 
concerned.  The  opening  up  of  the  coal  so  that  they  can  use  it — so 
that  they  can  stop  importing  coal  at  prohibitive  prices — and  the  con- 
struction of  a  great  trunk  line  of  railroad  from  some  point,  some- 
zvhere,  on  the  Pacific  Ocean  where  there  is  a  safe  harbor  open  to 
navigation  every  day  in  the  year,  to  and  through  the  rich  valleys 
of  the  interior  and  connecting  with  the  great  natural  water  high- 
way, the  Yukon  River — these  are  the  two  things  that  chiefly  oc- 
cupy the  minds  of  the  bona-fide  residents  of  Alaska.  The  whole 
future  of  the  country  depends  upon  the  answer  to  these  two  ques- 
tions. Where  such  a  railroad  shall  be  built  and  how  the  coal  shall 
be  reopened  to  development,  are  matters  of  detail  that  will  have 
to  be  threshed  out  on  their  merits.  Members  of  Congress  at  Wash- 
ington; members  of  the  American  Mining  Congress,  and  even 
Alaskans  themselves,  differ  on  these  points,  but  no  one  familiar 
with,  or  even  moderately  well  informed  as  to  the  actual  conditions, 


TRANSPORTATION  FACILITIES  IN  ALASKA.  203 

climatic,  physical  and  commercial,  can  have  two  opinions  on  the 
general  proposition  of  increasing  transportation  facilities  in  Alaska 
and  the  opening  of  her  coal  to  exploitation. 

I  could  quote  figures  and  furnish  statistics  about  Alaska  that 
would  make  your  head  swim,  but  I  do  not  think  it  would  do  any 
good.  In  case  there  may  be  some  one  present,  however,  who  thinks 
the  opposite,  and  not  merely  to  make  good  my  assertion,  I  will  get 
a  few  "into  the  record,"  as  they  say  at  Washington. 

Alaska  has  a  land  area  of  590,884  square  miles — about  one- 
fifth  of  the  area  of  the  United  States,  more  than  twice  the  size  of 
Texas,  and  over  twelve  times  the  size  of  New  York  State. 

Alaska  has  produced  in  GOLD  ALONE  since  1880  over  $200,- 
000,000. 

Alaska  has  produced  in  gold,  silver  and  copper  over  $230,000,- 
ooo. 

Alaska  has  produced  in  fish  and  furs  since  1869  over  $230,000,- 
ooo. 

Alaska's  trade  with  the  United  States  for  1911  was  $55,924,404. 

Alaska's  average  trade  with  the  U.  S.  for  eight  years  prior  to 
and  including  1911  was  $55,862,077. 

The  total  commerce  of  Alaska  for  the  eight  years,  1904  to  1911, 
both  inclusive,  was  within  $1,400,000  of  the  total  trade  of  the 
United  States  with  China  for  the  same  period,  while  it  exceeded  her 
total  trade  with  each  of  the  following  countries:  Hawaii,  British 
Australasia,  Scotland,  Ireland,  Spain,  Russian  and  British  India. 

The  trade  value  of  Alaska  to  the  United  States  is  nearly  $1,500 
per  head. 

The  trade  value  of  Hawaii  to  the  United  States  is  about  $350 
per  head. 

The  trade  value  of  the  Philippine  Islands  to  the  U.  S.  is  $4.13 
per  head. 

Alaska  has  yielded  to  the  United  States  since  1869  over  $450,- 
000,000. 

Alaska  was  bought  by  the  United  States  from  Russia  in  1867 
for  $7,200,000. 

When  one  considers  that  the  total  white  population  of  Alaska 
is  only  about  36,500;  that  the  annual  gold  output  is  almost  equal  to 
that  of  California  and  in  some  years  has  even  exceeded  it;  that 
the  annual  trade  is  nearly  sixty  millions  of  dollars ;  that  the  annual 
value  of  her  fisheries  is  nearly  twenty  million  dollars,  and  that 


204          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

there  are  less  than  450  miles  of  railroad  in  the  whole  Territory,  one 
is  staggered  by  the  facts,  and  begins  to  wonder  what  limit  the  figure 
would  reach  with  five  millions  of  people  and  5,000  miles  of  railroad! 
But  we  have  all  seen  these  stupendous  figures  quoted  before. 
Every  magazine  writer,  every  theorist,  every  "conservationist"  de- 
lights in  them,  and  it  seems  to  me  as  if  we  would  almost  have  been 
better  off  in  Alaska  without  the  recitation  of  such  facts,  much  less 
a  fanciful  exaggeration  of  them,  and  that  a  more  accurate  per- 
spective would  have  been  obtained  by  less  spectacular  methods. 
The  scenic  grandeur  with  which  Alaska  abounds;  the  salubrity  of 
her  climate;  the  immensity  of  her  area,  and  the  abundance  of  her 
natural  resources,  are  of  small  moment  if  her  people  chafe  under 
oppression  or  suffer  from  a  yoke  which  prevents  their  moving  nat- 
urally onward  in  the  path  of  progress.  Let  us  therefore  endeavor 
to  look  into  conditions  in  Alaska  from  a  more  practical  standpoint ; 
let  us  get  down  to  the  "brass  tacks"  of  the  situation;  let  us  apply 
the  true  test  of  a  country's  wealth,  namely,  the  happiness  and  con- 
tentment of  its  people!  Working  along  these  lines  you  will  find 
that  the  bona  fide  Alaskan  either  loses  his  self-control  entirely,  or 
retains  it  with  undisguised  effort,  when  he  discusses  the  actual  con- 
ditions as  they  affect  him.  Is  it  easy  for  a  man  doing  business  at 
a  place  surrounded  by  forests  in  which  the  timber  is  rotting  or 
growing  so  thickly  that  it  is  injuring  the  trees — to  discuss  without 
emotion  the  high  cost  of  the  lumber,  which  he  is  forced  by  absurd 
governmental  regulations  to  import  from  the  wealthy  merchants  of 
Puget  Sound  at  the  rate  of  $25.00  to  $40.00  per  thousand  for 
"rough"  lumber  ?  Or  do  you  expect  a  man  living  where  coal 
abounds  in  absolutely  limitless  quantities,  to  smile  cheerfully  when 
he  tells  you  it  is  against  the  law  to  take  one  shovelful  of  that  coal, 
and  that  he  must  perforce  pay  $150.00  per  ton  for  coal  produced 
by  the  coal  barons  of  British  Columbia  and  Japan?  Or,  again,  do 
you  wonder  that  it  is  extremely  difficult  for  a  resident  of  Alaska 
who  has  to  pay  2oc  per  mile  for  a  ride  on  the  railroad,  and  the 
price  of  an  "outfit"  for  shipping  it  a  few  miles  by  freight,  to  keep 
his  indignation  below  the  point  of  ebullition  ?  For  traveling  on  the 
railroads  that  have  their  terminal  at  tide-water  in  Alaska  proper, 
the  passenger  rate  is  2oc  per  mile,  and  the  freight  rates  are  cor- 
respondingly high,  yet  these  roads  are  said  to  be  running  at  a  loss, 
so  that  we  cannot  be  too  harsh  in  our  judgment.  Indeed  from  one 
point  of  view  these  railroads  are  a  distinct  blessing,  and  the  people 
of  Alaska  are  very  much  better  off  with  than  without  them.  The 
transportation  of  heavy  freight  would  be  impossible  without  them, 


TRANSPORTATION   FACILITIES  IN   ALASKA.  205 

while  there  are  many  mining  properties  contiguous  to  their  routes 
which  would  be  valueless  were  there  no  such  railroads.  In  view  of 
such  facts  we  must  not  be  too  ready  to  condemn  these  companies, 
which  probably  have  a  superabundance  of  troubles  of  their  own. 
The  truth  is,  that  while  Alaska  is  just  as  inexpensive  as  any  part 
of  the  Northwest  to  operate  and  maintain  a  railroad,  so  far  as  cli- 
matic and  other  natural  and  local  conditions  are  concerned,  the 
cost  of  fuel  is  practically  prohibitive  because  of  the  inability  to 
avail  themselves  of  the  native  coal.  Imagine  the  conditions  which 
compel  a  railway  company  in  Alaska  to  import  oil  from  California 
for  its  locomotives,  when  vast  quantities  of  the  finest  steam-coal 
in  the  world  are  to  be  had  along  its  line  of  route. 

The  title  of  the  subject  assigned  to  me  is  "Transportation 
Facilities  in  Alaska,"  but,  as  you  can  readily  see,  it  is  extremely 
difficult  to  discuss  it  without  dragging  in  some  other  matters, 
more  particularly  the  coal  question,  which  in  more  than  one  sense 
is  the  "burning"  question.  The  title,  moreover,  is  a  misnomer,  and 
if  I  were  to  adhere  rigorously  to  it  as  my  text,  I  could  dispose 
of  the  subject  in  about  two  seconds,  for  the  reason  that  Alaska 
is  celebrated  chiefly  for  its  lack  of  transportation  facilities.  I  wish 
the  members  of  the  American  Mining  Congress  and  "all  to  whom 
these  presents  may  come"  would  accept  this  statement  as  fact — 
for  fact  it  is — without  calling  upon  me  to  prove  it.  Not  that  I 
mind  doing  so,  or  am  unable  to  do  it,  because  I  intend  to  prove 
it,  but  because  the  general  experience  is  that  the  fewer  figures, 
calculations  and  statistics  with  which  you  burden  the  public,  the 
more  likely  you  are  to  secure  their  attention  in  making  any  state- 
ments of  fact,  and  what  the  people  of  Alaska  really  desire  is  to 
bring  home  to  Congress  and  to  the  people  of  the  United  States 
certain  broad,  general  facts,  illustrative  of  their  real  needs,  and 
in  such  a  way  as  to  challenge  attention  and  speedily  accomplish 
the  enactment  of  such  laws  as  will  allow  and  enable  Alaskans  to 
proceed  with  the  development  of  the  abundant  natural  resources 
lying  latent  about  them. 

Such  facts  are  in  reality  very  few,  I  mean  such  facts  as  are 
really  vital,  and  I  think  can  be  summed  up  under  two  heads. 
Here  they  are : 

1.  Alaska  needs  more  railroads,  wagon  roads  and  trails. 

2.  Alaska  needs  more  people. 

Inasmuch  as  you  automatically  supply  the  second  by  satisfying 
the  first  need,  an  adequate  transportation  policy,  wisely  executed, 
constitutes  and  embraces  the  really  vital  needs  of  Alaska. 


206         PROCEEDINGS  AMERICAN  MINING  CONGRESS 

If  her  needs  can  be  thus  summed  up  in  a  single  heading,  what 
she  wants  may  be  summarized  under  three  headings,  as  follows : 

1.  Alaska  wants  to  regain  the   right — unjustly,   inadvisedly 
and  illegally  snatched  from  her  seven  years  ago — to  mine  and  use 
her  own  coal. 

2.  Alaska  wants   the  present   nonsensical   and   demoralizing 
Forest  Reserve  regulations  revised,  if  not  cancelled  absolutely. 

3.  Alaska  wants  the  Homestead  Law  revised  and  made  com- 
patible with  the  natural  and  climatic  conditions  of  the  country. 

While  what  Alaska  needs  and  what  she  wants  are  two  different 
things,  the  one  is  as  insistent  as  the  other  in  the  call  for  immediate 
satisfaction.  Now,  a  short  tabulation  like  that  ought  to  be  easy 
to  remember,  and  yet  short  as  it  is,  it  contains  all  the  broad,  general 
facts  essentially  vital  that  demand  the  prompt,  considerate  and 
sympathetic  attention  of  the  Government  and  people  of  these 
United  States,  to  whom  Alaska  belongs  and  upon  whom  devolves 
the  responsibility  of  her  proper  administration,  and  the  peace, 
happiness  and  prosperity  of  her  people. 

There  are  other  facts  about  Alaska  which,  while  not  vital  or 
absolutely  essential  to  her  welfare,  are  very  interesting  and  instruc- 
tive and  well  worthy  of  attention,  but  they  are  too  many  to  enu- 
merate here. 

Then,  there  are  facts  about  Alaska  which,  while  not  "vital," 
are  worth  recording  in  the  hope  of  eradicating  certain  impressions 
an  uninformed  public  in  the  "East"  has  perhaps  unconsciously 
received,  and  which,  if  given  expression  in  the  form  of  retrograde 
legislation,  would  become  vital  and  affect  the  country  most  injuri- 
ously. Here  are  a  few  of  those  kind  of  facts  and  "he  who  runs 
may  read,"  although  if  he  contemplates  settling  in  Alaska  and 
waits  until  he  gets  there  before  reading  them,  very  likely  "he  who 
reads  will  run" : 

1.  There  are  six  real  and  two  "alleged"  railroads  in  Alaska, 
with  a  total  mileage  of  445  miles.     The  Honorable,  the  Secretary 
of  the  Interior,  says :     "There  is  only  one  real  railroad  in  Alaska 
outside  of  the  White  Pass  &  Yukon  Railway   (which  is  really  a 
Canadian  road).    Those  are  Mr.  Fisher's  exact  words. 

2.  Every  railroad  in  Alaska,  and  more  particularly  those  in- 
tended or  proposed  as  trunk  lines  from  the  coast  to  the  interior, 
is  or  can  be  maintained  open  throughout  the  whole  year.     The 
Tanana  Valley  Railway,  which  is  in  65°  north  latitude,  operates 
all  the  year  round. 


TRANSPORTATION   FACILITIES  IN  ALASKA.  207 

3.  The  United  States  Geological  Survey  reports  some  fifteen 
billion  tons  of  coal  in  Alaska.    This  refers  only  to  those  parts  of 
the  country  the  Geological  Survey  engineers  have  examined,  and 
represents  but  a  small  portion  of  the  territory. 

4.  The  coal   found   in  the  Behring  River  and   Mantanuska 
fields  is  high  grade  anthracite  and  bituminous,  and  makes  a  particu- 
larly excellent  coke. 

5.  The  heat  value  of  the  Matanuska  and  Behring  River  coal, 
as  stated  by  the  United   States   Navy  after  exhaustive  practical 
tests  on  warships  and  otherwise,  is  15,400  B.  T.  U.,  as  compared 
with  a  heat  value  of  14,800  B.  T.  U.  for  Virginia  coal  now  supplied 
to  the  navy. 

4.  No  Alaskan,   white,   native,   American  or  alien,   resident 
or  non-resident,  is  allowed  to  mine,  take,  use,  sell,  burn  or  remove 
any  coal  found  in  Alaska.     No  person  may  use  for  any  purpose, 
whether   for  himself  and  his   family  or   for  others,  a  pound  of 
coal  that  is  found,  contained,  or  "growing"  in  Alaska  or  any  part 
of  it.     To  do  so  brings  him  within  the  purview  of  the  criminal 
law  and  makes  him  guilty  of  larceny.    This  condition  has  existed 
for  over  seven  years  by  virtue  of  the  hasty,  illegal  act  of  the  Hon. 
Theodore  Roosevelt  while  President  of  the  United  States. 

5.  All  coal  used  in  Alaska  for  domestic  and  other  purposes 
is,  on  account  of  the  above  mentioned  facts,  imported  from  Canada 
and  Japan,  at  a  cost  to  Alaskans,  and  to  the  Government  itself 
at  its  naval  and  military  posts  there,  of  all  the  way  from  $10  to 
$300  per  ton. 

6.  The  Guggenheims  do  not  own  Alaska  now  and  never  did. 
They  have  no  monopoly  of  gold,  silver,  copper  or  coal  and  never 
did  have.     They  have  no  monopoly  of  transportation  and  never 
did  have.     They  own  what   Secretary   Fisher  says  is  the   "only 
railroad"  in  Alaska,  which  they  built  without  Government  aid  to 
a  copper  mine  they  bought  from  legitimate  prospectors,  who  located 
it,  and  this  road  has  rendered  comfortably  available  to  placer  miners 
and  "hard  rock"  miners  and  prospectors  a  country  formerly  con- 
sidered inaccessible  200  miles  from  the  sea  coast. 

The  primary  need  of  Alaska  is  not  solely  the  construction  of 
a  trunk  line  of  railroad  connecting  the  Pacific  Ocean  with  the  great 
waterways  of  the  interior;  it  includes  the  building  of  wagon  roads 
and  trails  which  would  act  as  feeders  to  such  a  line,  encourage 
and  facilitate  agriculture,  and  create  latent  mineral  wealth  into 
live  assets  coursing  through  the  channels  of  trade  and  commerce 
of  the  world.  The  following  official  statement  explains  itself: 


208          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

Roads  and  Trails  Constructed  in  Alaska  to  June  30,  1911. 

Total  cost  Average 
including  cost 

Kind.  Mileage,  maintenance.  per  mile.* 

Wagon    Roads....      800.2  $1,634,960.14  $2,043.20 

Sled   Roads 534.0  104,474.06  195.65 

Trails    1,557.0  130,454.98  83.80 


Total   2,891.2  $1,869,889.88  $   645.26 

*Includes  cost  of  maintenance  and  repairs. 

"Note. — All  cost  figures  given  include  cost  of  construction 
and  maintenance  of  bridges,  also  office  expenses  and  all  other 
charges  of  every  description  connected  with  the  work  of  the 
Alaska  Road  Commission." 

A  "sled  road"  is  a  swath  cut  through  the  woods,  or  a  path 
across  the  hills,  just  about  wide  enough  for  two  dogs  abreast  in 
harness.  It  is  meant  to  be  used  in  winter  and  can  generally  be 
used  in  summer  as  a  "pack"  trail  for  horses. 

A  "trail"  is  a  cross  between  a  sled  road  and  a  wagon  road 
and  is  sometimes  worse  and  sometimes  better  than  either. 

A  "wagon  road"  is  best  described  in  the  words  of  the  Hon. 
Walter  E.  Clark,  Governor  of  Alaska,  who  says : 

"A  wagon  road  is  a  road  16  feet  wide,  with  a  3-foot  berm  on 
each  side  of  the  graveled  or  wearing  surface,  with  a  ditch  on  each 
side  not  less  than  2  feet  deep  and  2  feet  wide,  and  often  larger. 
Those  dimensions  are  almost  invariably  maintained,  except  in 
going  around  hills,  when  it  is  necessary  to  make  a  cut,  or  in  going 
around  a  particularly  steep  place.  There  they  sometimes  narrow 
the  road  down  to  8  feet." 

All  of  these  2,900  miles  of  trail  and  roads  are  built  and  main- 
tained under  the  supervision  of  the  body  known  as  the  "Alaska 
Road  Commission,"  a  sub-department  of  the  War  Department, 
which  includes  in  its  annual  report  an  estimate  for  appropriations 
for  roads  and  trails  in  Alaska.  This  annual  appropriation  averages 
about  $200,000  and  is  woefully  inadequate.  The  administration  of 
this  Commission  is  most  excellent,  and  one  often  wonders  how 
they  accomplish  what  they  do  with  the  meager  amount  of  money 
at  their  disposal.  Just  here  I  should  like  to  refer  to  a  remark 
contained  in  my  address  before  this  Congress  a  year  ago  which 
seems  to  have  been  misunderstood.  I  then  said:  "The  people  of 
Alaska  owe  a  great  deal  to  the  Road  Commission  for  the  zeal  and 
efficiency  it  has  displayed  and  the  work  it  has  accomplished  in  the 
face  of  'red  tape'  and  ridiculously  inadequate  money  appropriations. 
These  gentlemen  do  the  best  they  can,  but  the  results  nevertheless 
are  horrible."  This  somewhat  unhappy  expression  was  in  no  way 


TRANSPORTATION   FACILITIES   IN  ALASKA.  209 

intended  to  reflect  upon  the  Alaska  Road  Commission,  as  any 
fair-minded  person  could  see  from  the  context.  What  I  meant 
was  that  after  the  Commission  had  done  its  best  and  had  exhausted 
the  annual  appropriation,  there  was  still  so  much  new  work  needed 
and  so  many  additional  roads  required  that  the  condition  resultant 
was  "horrible,"  and  that  statement  holds  good  today. 

We  may  eliminate  "trails"  and  "sled  roads"  as  important  fac- 
tors in  the  transportation  problem,  the  limitations  as  to  cost  and 
carrying  capacity  of  pack-horses  and  dogs  being  too  well  known 
to  argue  about.  What  then  can  you  think  of  a  system  of  wagon 
roads  with  a  total  mileage  of  800  miles  in  a  territory  whose  land 
area  is  larger  than  the  combined  areas  of  the  states  of  Washington, 
Oregon,  California,  Arizona  and  Nevada?  How  can  such  a  system 
develop  any  country  of  such  magnitude?  How  can  one  expect  to 
prospect  properly,  much  less  develop  and  operate,  lode  mines  at 
any  distance  from  tidewater,  where  heavy  machinery  has  to  be 
hauled  ?  You  practical  mining  men  know  the  answer,  Alaska  should 
have  an  annual  appropriation  of  $1,000,000  for  the  building  and 
maintenance  of  wagon  roads.  Such  an  appropriation,  wisely  ex- 
pended in  the  extension  of  good  roads  to  existing  placer  mining 
districts  and  well  defined  mineralized  zones,  would  give  a  tremen- 
dous impetus  to  lode  mining,  which,  owing  to  the  utter  lack  of 
transportation  facilities,  is  at  present  almost  entirely  confined  to 
districts  within  easy  reach  of,  or  actually  on,  tidewater. 

Needs  for  Railroads. 

The  Honorable  the  Secretary  of  the  Interior,  in  his  address 
before  the  American  Mining  Congress  at  Chicago  on  October  2/th 
last  year,  said :  "What  Alaska  needs  more  than  all  else  is  a  trunk- 
line  railroad  from  THE  OCEAN  TO  THE  GREAT  INTERIOR 
VALLEYS  OF  THE  Yukon  and  the  Tanana,  opening  up  the 
country  so  that  its  future  development  may  really  be  possible." 

The  Hon.  William  Sulzer,  now  Governor-elect  of  New  York, 
has  repeatedly  said  the  same  thing,  while  Mr.  Gifford  Pinchot 
expressed  the  identical  view  even  more  emphatically  in  an  article 
published  by  the  "Saturday  Evening  Post"  of  December  n,  1911. 

I  mention  these  three  public  men  not  because  their  opinion 
is  any  better  than  my  own,  or  that  of  other  people  familiar  with 
the  situation,  but  because  every  one  of  them  went  to  Alaska  with 
certain  pre-conceived  notions  as  to  what  it  really  needed  and  with 
a  panacea  for  all  its  woes  up  his  sleeve,  and,  after  careful  study 
on  the  spot,  each  one  by  himself  and  at  different  times  from  the 


210          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

other,  in  his  own  independent  manner,  arrived  at  precisely  the  same 
conclusion.  All  three  of  these  men  placed  the  need  of  Alaska 
for  railroad  transportation  facilities  before  everything  else,  even 
local  self-government.  Messrs.  Fisher  and  Sulzer  selected  the 
same  route  for  such  a  trunk-line  railroad  and  Mr.  Pinchot  approved 
of  it,  merely  qualifying  its  emphatic  endorsation  by  the  statement 
that,  as  he  was  not  an  engineer,  he  did  not  feel  competent  to  say 
whether  the  road  should  have  its  ocean  terminus  at  Seward,  Valdez 
or  Cordova. 

Both  the  Secretary  of  the  Interior  and  the  Hon.  William  Sulzer 
have  urged  Congress  to  build  this  projected  railroad,  the  former 
giving  as  one  reason  for  having  it  a  Government  undertaking,  the 
withdrawal  of  the  coal  fields  of  Alaska  from  entry  and  the  proposed 
reopening  of  them  on  a  leasing  system,  which  he  says  "will  take 
away  from  the  promoters  (private  individuals)  of  such  road  the 
lure  of  great  gain  from  the  exploitation  of  the  coal  fields."  I  am 
quoting  literally  from  the  Secretary's  address  delivered  before  this 
Congress  last  year.  The  address  was  the  first  official  pronounce- 
ment of  the  policy  of  the  present  administration  in  connection 
with  Alaska,  and  was  publicly  ratified  and  confirmed  the  next  day 
after  its  delivery  by  the  President  of  the  United  States  when  he 
honored  this  Congress  with  his  presence.  A  committee  composed 
of  members  of  the  American  Mining  Congress  was  appointed  to 
confer  and  co-operate  with  the  Secretary  of  the  Interior  in  pro- 
moting and  bringing  to  speedy  fruition  the  policy  so  ably  enunciated 
in  Chicago.  I  presume  that  committee  will  present  a  report  and 
speak  for  itself. 

In  the  announcement  of  the  Government's  policy  two  radical 
proposals  were  expressed,  namely,  Government  ownership  of  rail- 
roads and  the  opening  of  the  nation's  unappropriated  coal  lands 
on  a  leasing  basis.  So  far  as  the  people  of  Alaska  are  concerned, 
and  particularly  that  portion  of  them  whom  I  represent  and  speak 
for  here  today,  they  are  not  concerned  as  to  who  undertakes  the 
construction  and  operation  of  the  proposed  trunk-line  railroad. 
They  realize  their  own  needs ;  they  know  how  terribly  handicapped 
they  are  by  lack  of  transportation  facilities,  and  it  is  a  matter  of 
indifference  to  them  who  builds  such  a  road — what  they  ivant  is 
a  railroad,  and  they  don't  care  who  builds  it.  Personally,  I  do  not 
believe  in  Government  ownership  and  operation  of  such  a  railroad, 
not  because  it  could  not  be  successfully  done,  but  because  it  would 
not  accomplish  or  promote  anything  like  the  general  development 
that  would  be  brought  about  by  private  ownership  and  operation. 


TRANSPORTATION  FACILITIES  IN  ALASKA.         211 

Modern  railroad  managers  .plat  town-sites ;  colonize  large  tracts  of 
land;  build  hotels;  help  to  open  mines,  and  erect  smelters,  and  are 
generally  on  the  qui  vive  for  the  establishment  of  new  industries 
that  will  bring  traffic  to  their  road  and  customers  for  their  sub- 
sidiary concerns.  That  is  precisely  what  a  new,  sparsely  populated 
country  wants,  but  the  wildest  imagination  cannot  depict  the  Gov- 
ernment of  the  United  States  in  any  such  role.  At  present,  and 
almost  certainly  until  the  fuel  and  tonnage  questions  involved  in 
the  exploitation  of  the  coal  are  satisfactorily  settled,  railroad  build- 
ing is  and  will  be  at  an  absolute  standstill.  The  people  of  Alaska 
therefore  welcome  the  proposal  to  build  a  great  trunk  line  Govern- 
ment railroad,  if  and  so  long  as  the  conditions  are  such  as  to 
prevent  private  individuals  from  doing  so,  and  so  far  as  Government 
sympathy  and  encouragement  are  concerned,  the  present  conditions 
in  Alaska  are  probably  the  most  discouraging  in  the  world  as 
regards  railroad  building  and  enterprise  on  the  part  of  private 
individuals.  We  feel  that  great  injustice  has  been  and  is  being 
done  to  existing  railroads  in  Alaska,  and  that  the  Government 
should  aid  rather  than  hinder,  and  protect  rather  than  attack,  any 
corporation  or  individual  who  has  sufficient  faith  in  the  future  of 
Alaska  to  build  a  railroad  there,  or  in  any  other  way  increase  her 
transportation  facilities. 

There  was  so  much  opposition  on  the  part  of  people  interested 
in  places  other  than  that  suggested  by  Secretary  Fisher  and  Mr. 
Sulzer  as  the  ocean  terminus  of  the  proposed  railroad,  that  the 
Government  finally  appointed  a  Commission  to  investigate  all  of 
the  proposed  routes  and  report  to  Congress.  This  Commission 
has  just  returned  from  its  tour  of  investigation  in  Alaska,  and  its 
recommendations  are  awaited  with  great  interest. 

The  Leasing  System. 

The  transportation  question  and  the  coal  question  are  so  closely 
allied  that  one  cannot  well  discuss  one  and  not  refer  to  the  other. 
The  Government's  proposal  to  lease  its  unappropriated  lands  is  a 
new  and  radical  doctrine  in  America,  and  I  believe  it  is  largely 
due  to  misconceptions  and  false  impressions  created  originally  in 
the  minds  of  certain  people  who  were  honestly,  if  unduly  anxious 
or  over-sensitive,  about  the  rights  and  property  of  the  nation.  For 
instance,  a  story  was  circulated  and  received  the  most  widespread 
belief  that  there  were  just  two  good  coal  fields  in  Alaska,  worth 
untold  millions  of  money,  and  that  certain  grasping,  greedy  "male- 
factors of  great  wealth" — habitat  New  York — had  conspired  to 


212          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

gobble  up  these  two  rich  spots,  to  the  everlasting  injury  of  the 
shivering  residents  of  Alaska  and  the  eternal  impoverishment  of 
the  great  American  people.  A  cry  of  alarm  rang  throughout  the 
land,  but  by  one  great  patriotic — if  illegal — stroke,  a  President, 
ever  watchful  of  his  country's  weal,  averted  the  calamity  by  with- 
drawing in  a  night  every  particle  of  coal  land,  appropriated  and 
unappropriated,  in  Alaska  from  entry.  Prior  to  this  withdrawal 
the  bona  fide  residents  of  Alaska  could  keep  warm  in  their  homes, 
heat  the  iron  in  their  blacksmith  shops,  make  steam  for  their 
little  mining  plants,  and  generally  avail  themselves  of  the  benefits 
derived  from  this  wonderful  gift  of  God.  People  were  prospecting, 
developing  and  preparing  to  mine  and  sell  this  coal  in  Alaska 
and  outside  of  it ;  hundreds  of  men  were  employed,  railroads  were 
being  constructed  to  haul  this  coal  to  market ;  smelters  and  mining 
operations  on  a  large  scale  giving  employment  to  thousands  were 
contemplated,  and  a  buoyant,  hopeful  feeling  prevailed  throughout 
the  land.  That  was  seven  long  years  ago,  and  from  that  fatal  day 
to  this,  from  the  moment  that  paralyzing  edict  went  forth,  not 
a  shovelful  has  been  taken  from  the  untold  billions  of  tons  of 
coal  that  lie  scattered  all  over  the  country;  not  a  foot  of  develop- 
ment work  has  been  done  on  them,  not  a  shaft  sunk,  nor  a  tunnel 
driven.  Railroad  construction  ceased,  smelter  projects  dropped; 
people  left  the  country,  business  in  those  sections  contiguous  to 
the  larger  coal  fields  became  paralyzed,  merchants  were  ruined ; 
a  period  of  stagnation  set  in,  and  where  happiness  and  peace  reigned 
before  there  came  misery,  discontent  and  dissatisfaction,  which 
eventually  developed  into  a  feeling  of  disloyalty  bordering  on 
treason  and  rebellion.  Do  not  imagine  that  this  is  overdrawn. 
I  was  at  a  public  meeting  where  a  thoroughly  respectable  American 
citizen  introduced  a  resolution  that  had  previously  been  made  in 
two  other  towns,  advocating  secession  from  the  United  States 
and  annexation  to  Canada.  The  outraged  people  of  another  town, 
in  emulation  of  their  Boston  forefathers,  dumped  a  cargo  of  foreign 
coal  into  the  sea,  while  nothing  but  the  wise  counsel  of  a  few  of 
the  leading  men  prevented  the  probable  murder  (drowning)  of 
a  well-known  "conservationist/'  whose  illogical,  ill-advised  activities 
the  citizens  of  another  town  considered  responsible  for  the  com- 
mercial disaster  wrought  upon  them.  During  this  period  of  terrible 
suffering  on  the  part  of  "hardy  pioneers,"  business  men,  and  even 
large  corporations,  that  relied  upon  the  laws  of  the  land  for  their 
protection,  those  "malefactors"  of  Wall  Street,  who  were  supposed 
to  be  the  real  object  of  attack,  do  not  seem  to  have  lost  much  sleep, 


TRANSPORTATION   FACILITIES  IN   ALASKA.  213 

or  to  have  undergone  any  particular  discomfort.  But,  happily,  a 
more  enlightened  administration  succeeded  that  which  had  effected 
such  disastrous  results,  and,  during  the  summer  of  1911,  the  first 
step  towards  a  practical  solution  of  the  "Alaskan  problem"  was 
taken,  when  the  present  Secretary  of  the  Interior  visited  the  country 
and  made  a  personal  investigation  of  the  situation.  The  result  of 
that  investigation  was  given  at  Chicago  on  the  2Qth  of  October,  1911, 
in  one  of  the  ablest  speeches  ever  made  before  the  American  Min- 
ing Congress,  and  which  has  since  been  published  as  "Bulletin  36" 
of  the  Department  of  the  Interior,  Bureau  of  Mines. 

The  policy  of  the  Government  as  announced  by  the  Hon.  Mr. 
Fisher  was  hailed  with  delight  throughout  Alaska,  where  the  people 
felt  that  after  their  long  and  lean  seven  years  of  famine,  a  new 
era  of  peace  and  plenty  was  dawning  for  them.  Many  individuals 
and  public  bodies  in  Alaska  who  had  formerly  been  "unalterably 
opposed"  to  the  reopening  of  the  coal  fields  on  any  other  than  the 
fee  system,  changed  their  attitude  and  approved  of  the  leasing  sys- 
tem as  advocated  and  propounded  by  the  Honorable  the  Secretary 
of  the  Interior.  The  people  of  Alaska  read  the  Eastern  news- 
papers; they  are  as  intelligent  and  enlightened  as  any  civilization 
on  this  continent,  and  after  following  the  long  debate  on  "con- 
servation" ;  after  seeing  a  Cabinet  Minister  fall  before  the  weight 
of  a  new  public  opinion  aroused  to  the  boiling  point  by  the  errone- 
ous impression  that  this  official  was  ready  to  barter  or  give  away 
their  natural  heritage  of  public  lands,  the  Alaskans  came  to  the 
conclusion  that  "conservation"  had  come  to  stay ;  and  that  however 
erroneous  the  conception;  however  removed  from  the  truth  might 
be  the  reason  for  their  decision,  the  people  of  the  United  States — 
or  a  majority  of  them — had,  rightly  or  wrongly,  determined  that 
the  time  had  passed  when  the  nation  should  or  would  convey  an 
unrestricted  title  to  its  coal,  its  oil  and  its  other  natural  resources. 
They  believed  that  Secretary  Fisher  voiced  this  new  and  powerful 
public  sentiment  when  he  said:  "The  day  is  done  in  which  the 
Government  should  deliberately  encourage  the  unrestricted  private 
exploitation  of  the  sources  of  power."  The  people  of  Alaska  had 
suffered  from  the  closing  of  the  coal  fields ;  they  were  discouraged 
by  the  long  delay  in  reopening  them,  and  they  felt  that  almost  any 
system  which  would  lead  to  the  rehabilitation  of  business,  the  con- 
struction of  railroads,  and  the  opening  of  the  coal  mines  would 
be  welcome.  They  met  at  different  towns  and  passed  resolutions 
approving  the  policy  of  the  Taft  administration  towards  Alaska, 
and,  in  the  fervent  hope  that  these  great  latent  resources  would 


214          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

be  opened  up  shortly,  they  approved  of  the  principle  of  a  leasing 
system,  as  you  have  seen  from  the  resolutions  by  virtue  of  which 
I  stand  before  you  today.  They  now  appeal  to  the  American 
Mining  Congress  to  use  its  great  influence  in  bringing  about  the 
reopening  of  these  coal  lands  by  a  leasing  system  if  that  seems  to 
be  the  best,  the  most  feasible  and  the  most  quickly  obtainable  plan. 
But  in  adopting  this  principle,  which  they  do  chiefly  as  a  matter  of 
expediency,  perhaps,  there  is  not  a  man  in  Alaska  who  advocates 
or  favors  a  modification,  much  less  an  abrogation,  of  the  rights 
of  those  men  who  went  into  the  country  and  located  coal  claims 
honestly  and  according  to  law.  The  people  of  Alaska  are  a  law- 
abiding  people ;  they  uphold  and  respect  the  law,  and  they  maintain 
that  all  those  men  who  located  coal  in  accordance  with  the  law 
as  it  existed  before  the  withdrawal  of  the  coal  lands  from  entry 
in  1906,  are  entitled  to  a  patent,  that  in  every  instance  where  the 
law  has  been  complied  with  the  claimants  shall  receive  their  claims 
and  own  them  in  fee  simple  as  the  law  provided.  I  want  it  to 
be  clearly  understood,  therefore,  in  placing  before  you  the  views 
of  the  community  which  I  represent  that  they  do  not  contemplate 
or  approve  of  any  system  which  seeks  to  deprive  honest  coal  claim- 
ants of  their  property. 

And  just  here  it  may  be  pertinent  to  discuss  a  phase  of  the 
Alaska  coal  question  which  seems  to  me  has  too  often  been  over- 
looked. The  views  and  opinions  of  the  public — or  that  portion 
of  the  public  that  is  sufficiently  interested  to  form  any  opinion  at 
all  on  the  subject — have  been  shaped  largely  by  the  contentions 
of  those  persons  who  are  interested  in  coal  lands  directly  and 
indirectly  as  locators,  on  the  one  side,  and  by  arguments  and  by 
actions  of  the  Government,  who  is  opposed  to  them,  on  the  other. 
Nearly  everyone  thinks  only  of  the  rights  of  the  coal  claimant 
or  the  wrong  he  has  tried  to  perpetrate  on  the  Government,  and 
public  opinion  generally  is  based  on  the  theory  that  these  are  the 
only  parties  concerned,  they  are  certainly  the  most  frequently  and 
most  poignantly  heard  from.  Now,  I  venture  to  say  that  there 
are  at  least  25,  more  likely  50,  people  in  Alaska  who  are  in  no  way 
connected  with  or  interested  in  coal  or  coal  lands  as  locators,  for 
every  one  person  directly  or  indirectly  interested  in  that  way. 
Moreover,  the  great  majority  of  registered  coal  claims  reside  outside 
of  Alaska,  and  never  did  intend  to  live  in  it,  but  resident  or  non- 
resident, they  have  all  suffered  from  both  the  action  and  inaction 
of  the  Government,  according  to  whether  their  claims  have  been 
considered  fraudulent  or  not.  That  many,  if  not  the  greater  portion, 


TRANSPORTATION   FACILITIES   IN  ALASKA.  215 

of  coal  locations  in  Alaska  were  made  honestly  and  according  to  law, 
or  at  least  with  honest  intent,  there  is  scarcely  any  doubt,  but 
whatever  the  real  merits  of  the  controversy,  the  fact  remains  that 
there  are  untold  acres  of  coal  lands  ivhich  have  never  been  claimed 
or  located,  and  that  because  of  the  failure  to  open  them  and  allow 
them  to  be  mined,  the  36,000  odd  people  resident  in  Alaska  are 
suffering  keenly.  These  are  the  people  who  are  paying  the  toll 
to  foreign  coal  barons ;  these  are  the  people  who  are  forced  to  pay 
from  $20  to  $300  per  ton  for  British  Columbia  and  Japanese  coal, 
and  they  must  do  it  or  freeze  in  some  places  where  the  timber 
is  also  withdrawn. 

It  is  on  behalf  of  the  great  multitude  of  innocent  people,  inter- 
ested not  as  locators  but  as  consumers  of  coal,  that  I  speak  today. 
We  say  this  controversy  must  stop;  we  want  this  coal  opened  up 
before  we  die.  We  advocate  any  policy  that  will  protect  you  coal 
claimants  and  give  you  your  just  rights  and  privileges;  we  sympa- 
thize with  you  in  the  treatment  you  have  received ;  we  cannot 
respect  a  Government  that  accepts  your  money  and  then  refuses 
to  either  issue  a  patent  or  return  your  money.  But  we  wish  you 
to  understand  that  we  are  not  in  favor  of  having  all  this  coal  that 
we  need  so  badly  tied  up  and  locked  up  because  you  want  the 
Government  to  adopt  some  particular  system  or  policy  for  opening 
these  public  lands  that  may  take  years  to  become  effective.  We 
want  you  to  sympathize  with  us  a  little;  we  want  you  to  try 
to  look  at  this  thing  from  our  standpoint,  as  we  do  from  yours. 

We  want  the  Government  also  to  look  at  this  matter  from 
the  resident  consumer's  standpoint ;  we  want  it  to  give  the  existing 
coal  claimants  prompt  relief ;  a  fair  trial  and  proper  redress ;  we 
want  it  to  put  an  end  to  the  vexatious  delay  that  has  held  these  coal 
claims  unexploited;  but,  pending  a  just  settlement  of  those,  we 
call  upon  the  Government  to  open  up  the  unlocated,  unappropriated 
coal  lands  of  Alaska;  to  let  us  mine  some  of  the  coal  that  is  not 
involved  in  any  controversy;  and  to  repeal  the  law  that  makes  a 
criminal  and  a  law-breaker  out  of  the  prospector,  the  miner,  the 
farmer,  the  fisherman,  the  trapper,  and  any  other  "hardy  pioneer" 
who  takes  a  lump  of  coal  for  his  camp  fire ;  to  heat  the  iron  in  his 
forge,  or  to  warm  his  home.  Do  all  this  and  yet  leave  not  the 
other  undone. 

Summing  it  all  up,  the  situation  in  Alaska  is  just  this.  The 
people  there  favor  Government-owned  railroads  to  open  up  and 
develop  the  country,  chiefly  because  they  believe  existing  conditions 
are  not  conducive  to  such  undertakings  by  private  enterprise.  They 


216          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

favor  the  leasing  system  because  that  seems  to  many  of  them 
the  only  system  under  which  the  coal  will  be  opened  up  within 
anything  like  a  reasonable  time.  In  both  cases  it  is  now  a  question 
of  expediency  with  them,  and  as  this  does  not  necessarily  involve 
a  breach  of  principle,  no  one  can  blame  them.  The  plain  fact  is 
that  they  are  undergoing  real  suffering  and  hardship  because  of 
the  locking  up  of  the  coal,  and,  on  account  of  the  fearfully  inade- 
quate transportation  facilities  at  their  disposal,  and  any  honest 
plan  that  will  remedy  both  of  these  conditions  and  do  it  speedily, 
will  have  their  earnest  support  and  heartfelt  approval. 


The  Leasing  of  Mineral  Lands. 

WILLIAM    GRIFFITH, 
SCRANTON,    PA. 


Reformers,  or  so-called  conservationists,  in  their  recent  efforts 
to  secure  or  conserve  for  the  people  a  greater  share  of  the  proceeds 
of  the  mining  enterprises  on  the  public  lands,  have  fixed  upon  the 
leasing  method  as  the  one  best  adapted  to  secure  this  end,  and 
hope  to  substitute  it  instead  of  fee  simple  sales.  They  would  dis- 
tribute in  various  ways  for  the  public  good  the  royalties  arising 
from  such  leases,  and  to  avoid  the  chance  that  an  increased  market 
price  for  the  products  might  result  eventually  in  an  unduly  small 
royalty,  they  would  require  short  tenure  leases,  that  the  royalty 
might  be  from  time  to  time  changed  as  the  market  value  of  the 
product  varies,  and  thus  reserve  for  the  people  a  more  equitable 
share  of  the  proceeds;  and  all  for  the  purpose  of  aiding  the  laws 
of  conservation. 

We  respectfully  submit,  however,  that  this  proposed  plan  of 
short  tenure  leases  is  unsatisfactory,  impractical,  and  one  of  the 
most  wasteful  that  could  be  conceived.  It  has  been  abundantly 
proved  during  the  hundred  years'  life  of  the  coal  industry  of 
Pennsylvania,  during  which  all  sorts  of  titles  have  been  held,  that 
the  short-term  lease  is  exceedingly  wasteful  and  non-conservative 
in  its  tendencies.  The  results  of  experience  throughout  the  mining 
and  industrial  world  prove  that  there  is  an  economic  law  governing 
these  matters,  which  must  be  recognized  by  all  conservationists 
everywhere,  viz. :  Short  tenure  tends  toward  small  operating  units, 
careless  methods,  extravagant  waste  of  national  resources,  with 
excessive  loss  of  human  life;  while  long  tenure  promotes  large 
operating  units,  careful  and  scientific  methods,  with  the  greatest 
possible  conservation  of  life  and  property.  The  courts  in  many 
of  the  states  have  declared  over  and  over  again  that  a  perpetual 
lease,  that  is  to  say,  in  case  of  a  mining  property,  a  lease  until  all 
the  mineral  in  the  land  is  exhausted,  is  a  sale,  the  royalty  being 
payments  on  the  installment  plan.  If,  therefore,  it  is  determined 
that  the  public  lands  of  this  country  shall  be  leased,  the  proper 
sort  of  holding  would  be  a  perpetual  lease,  so  called,  or  as  near 
approach  to  it  as  may  be  possible;  not  less  than  50  years — unless 


218          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

the  mineral  is  sooner  exhausted — with  rights  of  renewal.  In 
order  that  the  royalty  may  fit  the  fluctuating  physical  and  market 
conditions,  it  should  be  arranged  on  a  sliding  scale,  automatically 
adjustable — a  percentage,  if  you  please,  of  the  market  value  of 
the  product;  thus  obviating  the  necessity  of  frequent  changes  of 
lease  and  royalty.  There  are  a  number  of  reasons  why  titles  held 
on  this  plan  are  very  advantageous,  some  of  which  we  will  briefly 
enumerate  below : 

A  perpetual  or  long-term  lease  is  advantageous  for  the  lessor 
or  owner,  and  for  the  lessee,  whether  prospector  or  operator.  It 
is  best  from  the  viewpoint  of  the  financier.  It  tends  to  the  greatest 
conservation  of  resources  and  human  life.  It  is  best  for  the 
people,  and  tends  to  reduce  speculation. 

It  is  best  for  the  lessor: 

A.  Because  it  tends  towards  large  operating  units,  induces 
permanent  equipment,  and  is  attractive  to  substantial,  experienced 
operators. 

B.  It   tends   toward   the  greatest   conservation   of   the   raw 
material  and  the  least  loss  of  human  life,  through  the  introduction 
of  scientific   and  workman-like  methods   and   life-saving  devices, 
resulting  in  a  greater  output  and  larger  returns  of  royalties,  and 
is  consequently  more  remunerative  to  him  than  an  outright  sale. 

It  is  best  for  the  lessee: 

A.  If  a  prospector,  it  encourages  exploration,  discovery  and 
development,  and  would  secure  to  him  a  surer  reward  with  the 
least  outlay,  for  if  he  shows  a  good  prospect  his  lease  is  more 
salable  than   a   fee  simple  title,  because  there   is  less  money   at 
stake  and  less  hazard  on  the  part  of  the  purchaser. 

B.  If  a  lessee  is  an  operator,  it  is  best  for  him,  because  the 
money  which  he  would  otherwise  invest  in  a  fee  simple  title  may 
be  used  to  prove  the  property,  and  if  found  good,  to  develop  and 
equip.    He  thus  secures  the  property  on  its  merits,  and  can  regulate 
his  investment  accordingly.    If  the  developments  show  the  property 
to  be  worth  it,  he  will  be  warranted  in  installing  substantial  equip- 
ment, and  his  title  affords  suitable  security  upon  which,  if  desired, 
to  borrow  the  necessary  capital.    If  his  provings  show  the  property 
to  be  unsatisfactory,  he  may  forfeit  his  lease,  and  thus  save  what 
would  otherwise  be  lost  through  purchase  of  the  fee  simple  title. 

Next  to  the  fee  simple  title,  a  perpetual  lease  is  the  best  from 
the  viewpoint  of  the  financier,  because  it  tends  toward  more  sub- 
stantial, permanent  equipment,  larger  outputs  and  profits,  thus 
affording  better  security  for  loans,  and  permits  long-term  bonds 


THE   LEASING   OF   MINERAL   LANDS.  219 

which  are  more  attractive  to  investors.  Short-term  leases  or  con- 
tracts, subject  to  changes  at  renewal  periods,  are  poor  security, 
and  cannot  be  easily  financed. 

From  the  viewpoint  of  the  conservationist  the  perpetual  lease 
is  preferable: 

A.  Because  the  lessee  expects  to  exhaust  all  the  coal,  and 
therefore  conserves  the  supply  for  the  future  by  avoiding  waste 
in  mining,  and  to  secure  this  end,  can  afford  the  expense  necessary 
to  install   permanent,   up-to-date  plants,   use  the   latest   and   best 
mining  methods,  employ  competent  engineering  advice,  and  means 
for  preserving  the  lives  and  comfort  of  employes. 

B.  It  is  to  the  advantage  of  the  operator  for  conservation 
purposes  to  experiment  with  and  investigate  new  methods  of  mining 
and  utilizing  his  product  in  order  to  make  a  market  for  inferior 
portions  of  the  ore  or  coal  which  might  be  otherwise  wasted. 

C.  The  quantity  of  ordinary  waste  or  refuse  material  from 
large  plants  is  so  great  that  its  possible  value  becomes  an  item  of 
considerable  importance,  and  is  worth  the  expense  of  searching  out 
new  methods  for  its  utilization  and  conservation. 

Perpetual  leases  promote  public  welfare,  because : 

A.  They  will  stimulate  prospecting,  and  the  discovery  of  new 
coal  or  mineral  areas. 

B.  They  hasten  developments  more  rapidly  than  any  other 
sort  of  title. 

C.  They    will    produce    revenue    for    school    and    territorial 
purposes. 

The  leasing  method  is  not  advantageous  for  the  speculator 
in  lands  or  mines,  because  his  profits  would  necessarily  be  smaller 
than  in  case  of  sale  of  fee  property,  for  the  purchaser  must  pay 
twice;  first,  as  a  profit  to  the  speculator;  second,  as  royalties  to 
the  lessor. 

The  above  general  principles  would  seem  to  be  universally 
applicable,  and  to  apply  with  double  force  to  the  coal  lands  of 
Alaska,  because  the  best  coals  of  the  territory  are  high-grade  only 
because  of  their  proximity  to  the  volcanic  rocks,  and  are  therefore 
liable  to  be  much  broken,  folded  or  crushed  through  the  movements 
or  quakings  common  to  eruptive  measures. 

On  account  of  the  unfavorable  physical  conditions,  added  to 
the  high  cost  of  labor  and  material,  and  lack  of  transportation  facili- 
ties, the  preliminary  expense  of  properly  proving  Alaska  coal  lands 
for  the  operator  will  be  unusually  large.  This  must  be  done,  how- 
ever, before  he  is  warranted  in  making  the  investments  necessary 


220          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

to  equip  a  mine  plant.  How  much  better,  therefore,  it  would  be 
under  these  circumstances  if  land  could  be  purchased  on  its  merits, 
by  this  installment  plan,  instead  of  first  hazarding  the  cost  of  a  fee 
simple  title,  which  might  ultimately  result  in  a  dead  loss.  Under 
the  perpetual  lease  the  rights  of  the  prospector  or  operator  may  be 
well  protected,  and  he  is  at  all  times  posted  as  to  the  probable  value 
disclosed  by  his  development  work,  and  may  regulate  his  invest- 
ments accordingly,  without  first  being  required  to  gamble  on  a  fee 
simple  title. 

The  long-term  lease  is  a  very  popular  method  of  handling  coal 
properties  in  the  Eastern  United  States.  It  is  favored  both  by 
the  land  owner  and  by  the  operators.  In  fact,  most  coal  operators 
would  choose  such  a  title  in  preference  to  investing  so  much  of 
their  capital  in  land  purchases;  but  no  one  favors  the  short  tenure 
lease.  The  coal  land  owner,  as  the  result  of  dire  experience,  views 
it  as  the  ingenuous  device  ever  instituted  for  the  purpose  of  wan- 
tonly wasting  his  substance,  and  the  operator  regards  it  as  a  de- 
lusion and  a  snare.  It  deludes  him  with  the  pleasant  but  often- 
mistaken  notion  that  he  can  pay  out  the  investment  with  large  profits 
before  his  short  lease  expires,  and  it  becomes  a  snare  when  he 
gets  in  financially,  and  then  finds  that  he  can't  get  out. 


Mineral  Land  Laws  and  the  Decadence  of  Prospecting. 

GEORGE  W.  RITER, 
SALT   LAKE   CITY,    UTAH. 


In  former  days  prospectors  going  upon  the  public  domain, 
searching  for  precious  metals,  used  to  think  they  were  taking  as 
many  chances  as  they  ought  to  take,  when  they  gambled  their  judg- 
ment, their  time,  their  labor,  and  the  whole  of  their  financial  re- 
sources, against  the  whims  of  nature.  On  learning,  nowadays, 
that  they  must  also  gamble  against  the  whims  of  the  executive 
branch  of  the  Federal  Government,  they  begin  wondering  whether 
the  effort  is  really  worth  while. 

Western  mining  men  are  plainly  disconcerted  over  the  abrupt 
changes  in  the  interpretation  of  the  law  by  the  Department  of  the 
Interior,  as  evidenced  by  the  ruling  in  the  case  of  the  East  Tintic 
Consolidated  Mining  Company,  originating  in  Utah.  In  that  ruling 
the  department  directs  the  cancellation  of  a  mineral  entry  "in  its 
entirety,"  and  says: 

"The  exposure  of  substantially  worthless  deposits  on  the  sur- 
face of  a  claim;  the  finding  of  mere  surface  indications  of  mineral 
within  its  limits ;  the  discovery  of  valuable  mineral  deposits  outside 
the  claims ;  or  deductions  from  established  geological  facts  relating 
to  it;  one  or  all  of  which  matters  may  reasonably  give  rise  to 
belief,  however  strong  it  may  be,  that  a  valuable  mineral  deposit 
exists  within  the  claims,  will  neither  suffice  as  a  discovery  thereon 
nor  be  entitled  to  be  accepted  as  the  equivalent  thereof. 

"To  constitute  a  valid  discovery  upon  a  claim  for  which  patent 
is  sought,  there  must  be  actually  and  physically  exposed  within  the 
limits  thereof  a  vein  or  lode  of  mineral-bearing  rock  in  place,  pos- 
sessing in  and  of  itself  a  present  or  prospective  value  for  mining 
purposes ;  and  before  patent  can  properly  be  issued  or  entry  allowed 
thereon,  that  fact  must  be  shown  in  the  manner  above  stated." 

Unmoved  by  appeals  for  a  reconsideration  of  the  case,  the 
department  stands  its  ground;  and,  speaking  through  Assistant 
Secretary  Adams,  it  suggests  that  the  welfare  of  the  nation  calls 
for  a  more  literal  interpretation  of  the  existing  statutes  than  has 
heretofore  been  customary.  It  does  no  good  to  point  out  that  the 
East  Tintic  ruling  is  not  consistent  with  department  practice  in 


222          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

other  matters.  In  the  classification  of  oil  lands,  coal  lands,  phos- 
phate lands,  and  other  lands  that  are  withdrawn  from  entry,  ap- 
praised, or  handled  in  a  special  way,  the  sort  of  evidence  sought 
for  and  used  by  the  Department  of  the  Interior,  as  a  basis  for  its 
own  acts,  is  exactly  the  sort  of  evidence  that  a  prospector  is  for- 
bidden to  use  as  the  basis  for  a  location  or  a  mineral  entry.  "Surface 
indications" ;  the  peculiar  nature  of  the  "substantially  worthless 
deposits  on  the  surface" ;  facts  relating  to  "the  discovery  of  valuable 
.  .  .  deposits  outside" ;  deductions  from  established  geological 
facts" ;  on  this  sort  of  evidence,  gathered  perfunctorily,  the  depart- 
ment justifies  itself  in  appraising,  bartering,  withdrawing,  or  other- 
wise dealing  with  lands  on  a  wholesale  scale;  but  discredits  such 
evidence  when  it  is  presented  by  a  prospector  who  has  gathered 
it  slowly,  laboriously,  and  at  a  cost  to  himself  that  is  quite  high 
per  acre  of  land  involved. 

As  has  been  pointed  out  frequently  by  eminent  writers  on 
mining  topics,  the  federal  mining  laws,  so  called,  are  nothing  more 
than  statutes  authorizing  the  Department  of  the  Interior  to  sell 
mineral  lands  to  citizens,  or  intended  citizens,  who  comply  with 
certain  statutory  requirements.  The  act  of  1866  began  with  a 
declaration  of  national  policy.  The  same  is  true  of  the  act  of 
1872.  The  language  is  different,  but  the  spirit  is  the  same.  The 
first  section  of  the  act  of  1872,  which  is  reiterated  in  the  revised 
statutes  now  in  effect,  reads : 

"All  valuable  mineral  deposits  in  land  belonging  to  the  United 
States,  both  surveyed  and  unsurveyed,  are  hereby  declared  to  be 
free  and  open  to  exploration  and  purchase,  and  the  lands  in  which 
they  are  found  to  occupation  and  purchase,  by  citizens  of  the 
United  States  and  those  who  have  declared  their  intention  to  become 
such,  under  regulations  prescribed  by  law  and  according  to  the 
local  customs  and  rules  of  miners  in  the  several  mining  districts, 
so  far  as  they  are  applicable  and  not  inconsistent  with  the  laws 
of  the  United  States." 

Now,  the  Department  of  the  Interior,  as  a  part  of  the  executive 
branch  of  the  Government,  is  supreme  in  the  matter  of  its  own 
reasoning  and  procedure.  So  that  when  the  Secretary  of  the  In- 
terior reasons  that  the  welfare  of  the  nation  calls  for  stricter  inter- 
pretation of  the  law  relating  to  mineral  entries,  or  decides  that  an 
entryman  has  or  has  not  complied  with  the  law,  he  speaks  the  last 
word,  and  there  is  no  chance  for  any  appeal,  except  to  the  people 
at  election  time  once  in  four  years,  or  to  Congress  for  a  change 
in  the  law  upon  which  the  ruling  is  based.  The  East  Tintic  case 


MINERAL  LAND  LAWS,  DECADENCE  OF  PROSPECTING.  223 

sets  a  precedent ;  and  from  now  on,  and  until  Congress  chooses  to* 
act,  the  cancellation  of  any  mineral  entry  "in  its  entirety"  will 
be  quite  regular.  Cancellation  may  not  become  common,  however, 
because  fewer  mineral  entries  will  be  attempted,  and  the  capital 
formerly  available  for  prospecting  will  hereafter  keep  itself  at  a 
safe  distance. 

The  feature  of  the  existing  law  which  is  perhaps  the  most 
deplorable  of  all,  and  which  becomes  worse  and  worse  with  age,  is 
the  one  permitting  lode  locations  to  remain  in  loose,  indefinite 
state,  for  unlimited  period  of  time,  without  requiring  a  survey 
or  any  sort  of  record  in  the  United  States  Land  Office.  As  time 
goes  on  it  becomes  more  and  more  difficult,  if  not  absolutely  im- 
possible, to  determine  what  unpatented  mineral  lands  are  held  under 
a  valid  right,  or  whether  any  valid  rights  exist  within  a  specified 
area.  Perpetuation  of  the  boundary  monuments  of  unpatented  lode 
claims  is  not  even  required.  The  official  notes  filed  in  the  Land 
Office  of  lode  claims  surveyed  for  patent  show  that  in  a  surprisingly 
large  number  of  cases  the  location  corners  could  not  be  found  by 
the  surveyors  at  all,  or  were  not  in  the  places  contemplated  by  the 
location  notices.  The  final  result  in  every  active  mining  district 
is  a  group  of  tangled  claims,  whose  rights  and  boundaries  when 
any  valuable  ore  deposit  is  involved,  must  usually  be  determined 
by  law  suits  that  are  as  expensive  and  as  distressing  as  the  stakes 
are  high. 

Until  recently  any  prudent  mining  man  who  wished  to  ascertain 
before  spending  too  much  money  what  rights  he  really  had,  as 
against  other  possible  locators,  could  make  application  for  a  United 
States  patent  for  his  claim;  whereupon,  adverse  claimants,  if  any 
existed,  were  obliged  to  define  and  maintain  whatever  rights  they 
claimed  or  be  forever  barred.  After  notice  of  intention  to  apply 
for  a  patent  had  been  advertised  for  the  statutory  period,  the  appli- 
cant knew  where  he  stood.  The  patent,  when  issued,  conferred  no 
new  rights,  but  merely  certified  the  rights  already  acquired  through 
location  and  development. 

Upsetting  all  this,  we  now  have  the  precedent  set  by  the  can- 
cellation of  the  East  Tintic  entry  "in  its  entirety."  In  effect,  this 
means  cutting  off  the  opportunity  to  go  through  the  only  proceeding 
by  which  a  claimant  may  determine  with  certainty  whether  he  has 
even  preferential  rights  within  a  specified  area.  If  the  intention 
of  the  ruling  had  really  been  to  unsettle  titles  and  to  discourage 
prospecting,  it  could  hardly  have  been  more  to  the  point.  Under 
this  ruling  few  of  the  big  mines  of  today  could  ever  have  been 


224          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

patented  during  their  period  of  development ;  and  in  the  absence  of 
quiet  title,  it  is  hardly  likely  that  anybody  would  have  risked  the 
money  necessary  to  bring  these  properties  to  their  present  producing 
stage. 

The  economics  of  prospecting  is  a  subject  upon  which  few 
mining  writers  have  dared  to  venture  openly  and  seriously.  By 
"prospecting"  more  is  meant  than  the  nomadic  act  of  roaming  over 
the  country,  looking  for  outward  signs  of  the  existence  of  mineral 
deposits.  The  word  as  used  here  includes  everything  that  is  in- 
volved in  bringing  a  mining  venture  through  its  infancy  and  until 
it  reaches  a  stage  where  it  can  produce  at  a  profit.  Prospecting 
is  liable  to  so  many  pitfalls  that  no  mining  writer  feels  competent 
to  treat  the  subject  comprehensively.  If  competent,  he  would  write 
at  the  risk  of  becoming  unpopular,  for  the  reason  that  disagreeable 
truths  are  seldom  welcome. 

The  decadence  of  prospecting  is  being  discussed  seriously 
throughout  the  West.  Other  countries  than  ours  are  discussing  it 
with  signs  of  alarm,  and  are  trying  to  make  their  mineral  laws 
more  and  more  liberal.  If  a  liberal  policy  on  the  part  of  our  own 
Government  was  ever  justifiable  at  any  time,  is  it  not  justifiable 
now?  The  easy  mining  ventures  have  already  been  picked  over 
pretty  well,  and  from  now  on  the  chances  are  remote  for  discovering 
precious  metal  deposits  of  importance,  except  as  the  result  of  long, 
patient  and  expensive  effort. 


The  Washington  Compensation  Act. 

JOHN    H.    WALLACE, 
MEMBER  INDUSTRIAL  INSURANCE  COMMISSION  OF  WASHINGTON. 


Gentlemen  of  the  American  Mining  Congress:  I  am  here  in 
response  to  your  telegram.  I  am  here  to  bring  you  some  informa- 
tion regarding  the  first  year's  operation  of  the  first  compulsory 
workman's  compensation  system  in  force  on  the  American  con- 
tinent. The  whole  civilized  world  has  risen  in  arms  against  the 
negligence  or  litigation  system,  and  there  is  not  a  legislature  in 
the  United  States  during  the  coming  winter,  where  the  old  system 
has  not  yet  been  broken  down,  that  will  not  be  discussing  that 
antiquated,  strife-breeding  thing  which  has  done  more  probably 
than  any  other  one  social  institution  to  bring  about  bitterness  be- 
tween capital  and  labor,  and  cause  whole  sections  of  working  men 
to  believe  in  class  warfare. 

For  nearly  thirty  years  almost  every  enlightened  nation  of 
Europe  has  been  content  to  see  the  common  law  system  of  damage 
litigation  safely  repose  in  the  legal  scrap-heap.  The  American 
states  have  suddenly  awakened  to  the  fact  that  they  are  in  this 
respect  the  least  progressive  in  the  sisterhood  of  nations.  Now, 
in  the  last  three  years  compensation  commissions  of  the  Federal 
Government,  and  of  at  least  22  states,  have  been  searching  European 
experience  and  weighing  constitutional  provisions  to  obtain  the  best 
possible  substitute  for  the  injustice-dealing  system  so  universally 
condemned. 

In  some  quarters  the  idea  still  prevails  that  the  old  machinery 
can  be  patched  up  by  abolishing  the  fellow-servant  doctrine,  the 
contributory  negligence  theory,  and  the  rule  of  assumed  risk.  A 
study  of  the  appalling  facts  of  work  accidents  that  students  and 
economists  are  mining  out  and  bringing  into  daylight  demonstrates 
beyond  peradventure  that  justice  to  working  men  in  hazardous 
employments  cannot  be  obtained  by  any  such  half-way  measures. 
For  instance,  the  United  States  Bureau  of  Labor  analyzing  46,000 
accidents  in  Germany  shows  that  notwithstanding  the  extraordinary 
supervision  and  safeguarding  applied  to  working  men  of  the  same 
race  and  tongue,  who  have  had  military  training,  still  forty-two 


226          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

per  cent  of  accidents  result  from  the  inevitable  risk  of  the  trade. 
No  man  with  knowledge  of  the  American  character,  of  American 
machinery  and  working  conditions,  with  a  knowledge  of  the  cos- 
mopolitan crowd  and  the  babble  of  tongues  that  make  up  the 
rank  and  file  of  our  industrial  population  with  practically  no  train- 
ing in  the  pursuits  which  they  now  follow,  can  seriously  question 
the  proposition  that  fifty  per  cent  of  the  accidents  that  happen  to 
working  men  cannot  be  compensated  except  through  the  installation 
of  a  compensation  system,  even  though  the  unholy  trinity  of  em- 
ployers' defenses  be  abandoned. 

The  workmen's  compensation,  or  industrial  insurance  act  of 
the  state  of  Washington,  became  a  law  for  administrative  purposes 
when  Governor  Hay  signed  the  bill  March  14,  1911.  It  went  into 
effect  as  between  employer  and  employe  October  i,  1911,  and  the 
first  compensation  year  ended  October  I,  1912.  During  this  year 
something  like  6,000  employers  have  been  compelled  to  contribute 
to  forty-seven  groups  of  industrial  funds,  paying  into  the  hands 
of  the  state  for  purposes  of  compensating  injured  workmen, 
roundly,  $1,000,000.  During  this  same  year  there  was  formally 
reported  to  the  Industrial  Insurance  Commission,  which  administers 
the  law,  11,896  accidents,  a  close  approach  to  1,000  accidents  per 
month  out  of  an  industrial  army  of  approximately  125,000  men. 

Out  of  this  $1,000,000  contributed  by  the  industries  of  the 
state,  and  for  which  they  were  absolutely  protected  against  all 
damage  suits  by  their  workmen  of  every  kind  and  character,  there 
was  paid  to  injured  workmen,  roundly,  the  sum  of  $700,000,  and 
$300,000  remained  on  hand  as  a  balance  credited  in  various  amounts 
to  the  forty-seven  classes,  out  of  which  we  are  now  compensating 
injured  men  in  the  second  compensation  year. 

This  fund  has  been  accumulated  and  distributed  without  the 
aid  of  courts,  juries,  lawyers,  claim-agents,  bailiffs  and  constables 
— the  whole  jurisdiction  of  the  courts  having  been  swept  away  by 
the  most  courageous  piece  of  social  legislation  enacted  in  any  state. 
The  idea  of  blame  as  a  ground  for  damages  is  abandoned ;  the 
idea  of  revenge  at  the  hands  of  a  sympathetic  jury  is  discarded ; 
the  idea  of  a  great,  glittering,  gambling  chance  to  be  obtained 
through  perjury  is  gone.  I  think  it  is  not  too  much  to  say  that 
a  new  day  of  industrial  peace  has  dawned  in  Washington. 

I  do  not  mean  to  say  that  in  my  judgment  the  awards  to 
injured  workmen  are  as  much  as  industry  could  afford  to  pay. 
But  I  do  believe  that  at  this  time,  until  other  American  states 
shall  have  established  schedules  of  compensation,  the  workmen 


THE   WASHINGTON    COMPENSATION   ACT.  227 

of  this  state  should  not  attempt  to  penalize  the  young  enterprises 
that  are  here  trying  to  get  a  financial  foothold  by  putting  them 
under  a  burden  which  their  Eastern  competitors  do  not  bear. 
Accordingly  the  first  annual  report  of  the  Industrial  Insurance 
Commission  will  not  recommend  that  the  award  schedules  providing 
the  sums  of  money  to  be  paid  to  injured  men,  or  their  dependents, 
if  killed,  be  materially  increased. 

The  award  schedules  in  the  Washington  act  fall  into  three 
heads : 

First,  a  workman  temporarily  knocked  out  and  incapable  of 
working  is  allowed  $i  a  day  until  he  is  physically  able  to  get  back 
to  his  job.  If  he  has  a  wife  he  will  be  entitled  to  something  less 
than  $1.50  a  day;  a  wife  and  one  child,  $1.75  a  day;  a  wife  and 
two  or  more  children,  $2  per  working  day,  always  providing,  how- 
ever, that  an  award  shall  never  exceed  sixty  per  cent  of  his  wages 
when  hurt. 

The  second  group  provides  for  the  survivors  of  killed  work- 
men, $20  a  month  to  the  widow  for  life,  $25  if  she  has  one  child, 
$30  if  two  children,  $35,  the  maximum,  if  three  or  more  children. 
And  the  particular  industry  which  killed  the  bread-winner  is  re- 
quired to  put  up  a  reserve  to  guarantee  the  continuance  of  these 
monthly  payments  through  the  widow's  life,  and  until  the  children 
reach  the  age  of  sixteen,  a  sum  not  to  exceed  $4,000  on  any  one 
workman's  life. 

The  third  group  provides  for  dismemberments,  or  other  per- 
manent cripplings  which  can  be  surgically  measured.  The  maxi- 
mum, $1,500,  for  a  workman's  arm  at  or  above  the  elbow.  The 
commission  has  worked  out  a  proportionate  scale  which  will  be 
published  in  detail  in  our  first  annual  report,  and  which  I  need 
not  therefore  refer  to,  except  to  say  that  the  scale  allows  $225 
for  the  entire  right  index  finger,  $850  for  the  loss  of  an  eye,  etc. 

As  one  of  the  three  commissioners,  and  accredited  with  repre- 
senting labor  on  that  board,  I  do  not  mean  to  say  here  that  the 
law  is  entirely  satisfactory  to  the  working  men  of  this  state.  Or- 
ganized labor  and  labor's  friends  will  urge  with  great  vigor  and 
insistence  that  supplementary  legislation  be  enacted  in  Olympia 
this  coming  winter  that  will  provide  that  the  cost  of  medical  treat- 
ment be  supplied  him  as  a  part  of  the  cost  of  production  in  each 
industry.  Our  statistics  for  the  first  compensation  year  show  that 
the  average  workman  receives,  under  the  compensation  act,  about 
one-third  of  his  loss.  That  is,  his  wage  loss,  due  to  accident  and 
the  cost  of  treating  his  injury  combined,  amounts  to  about  three 


228          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

times  the  award  under  the  law.  That  is  to  say,  as  the  law  now 
stands,  the  workman  bears  two-thirds  of  the  burden  of  work  acci- 
dents and  the  industry  one-third.  Labor,  organized  and  unorgan- 
ized, will  insist  that  the  workman,  through  his  carelessness,  is  not 
responsible  for  more  than  one-third  of  the  accidents  that  happen 
and  that  any  system  is  unrighteous  which  asks  him  to  bear  more 
than  one-third  of  the  burden. 

I  am  perfectly  aware  that  good  employers  all  over  this  state 
do  now  go  to  expense  for  their  injured  workmen,  pay  transporta- 
tion, pay  the  doctor,  pay  hospital  bills  and  frequently  advance 
money  to  the  family.  Labor  will  insist  that  it  is  no  more  than  just 
that  the  employer  who  declines  to  voluntarily  do  equity  shall  be 
brought  up  to  the  reasonable  standard  of  the  good  employer  by 
coercive  legislation. 

Now,  labor  and  labor's  friends  are  going  to  point  out  in  con- 
nection with  the  Workman's  Compensation  Act  of  this  state,  that 
during  the  seven  years  ending  with  1911,  there  was  drained  out 
of  this  state  into  the  treasury  of  casualty  companies  over  $4,000,000 
in  premiums  on  policies  designed  to  protect  the  employer  against 
law  suits.  During  this  same  seven  years  the  sworn  statements 
of  the  officers  of  these  companies  show  that  they  paid  back  to  the 
injured  workmen  less  than  $975,000 — less  than  twenty-five  per  cent 
of  their  receipts — and  you  know,  and  I  know,  that  these  losses 
included  many  a  large  verdict,  half  of  which  the  lawyer  got,  and 
in  many  cases  the  workman  paid  the  costs  of  appeals  through  four 
or  five  years  besides. 

Now  add  to  this  annual  premium  drain  for  court  protection 
a  drain  that  amounted  to  over  $900,000  in  1910 — the  indirect  costs 
of  the  negligence  and  law  suit  systems  such  items  as  verdicts  in 
excess  of  the  $5,000  which  was  the  usual  limit  of  a  policy's  pro- 
tection, the  retainers  paid  lawyers,  transportation  and  hotel  bills 
furnished  witnesses,  the  reduced  production  in  the  plant  by  the  em- 
ployer's enforced  absence  and  the  absence  of  his  foreman,  etc.  The 
time  and  expense  and  worry  of  ferreting  out  and  keeping  in  touch 
with  witnesses,  the  misunderstanding  by  the  workmen  resulting 
from  pending  litigation,  the  danger  of  bankruptcy  through  vindic- 
tive jury  verdicts,  and  the  impairment  of  credit  at  banks  incident 
to  considerable  litigation,  add  to  these  real  but  indirect  drains  upon 
industry  the  premium  of  self-insurers  like  the  coal  companies,  the 
street  railway  companies  and  the  horde  of  contractors  who  "took 
their  chances"  and  it  is,  I  think,  sufficient  to  claim  that  the  $900,000 
of  casualty  premiums  in  1910  is  but  a  portion  of  the  drain  upon  in- 


THE  WASHINGTON    COMPENSATION   ACT.  229 

dustry.  There  could  not  have  been  less  than  $1,250,000  of  a  drain 
upon  the  industries  in  1910  against  the  $700,000  paid  out  in  full 
and  final  settlement  of  all  charges  in  1912.  Thus  you  get  the 
measure  of  satisfaction  to  the  industries  of  the  state  resulting  from 
the  Compensation  Act,  for  $300,000  of  the  $1,000,000  paid  in  to  the 
47  funds  was  on  hand  on  October  ist  to  continue  the  second  year's 
work. 

I  have  said  that  labor  is  not  entirely  satisfied  with  the  results 
under  the  compensation  system,  and  I  think  I  have  demonstrated 
that  industry  can  do  better  and  still  be  less  burdened  both  mentally 
and  financially  than  under  the  discarded  litigation  system. 

I  believe  first  aid  should  be  provided  by  the  industries  either 
wholly  from  the  accident  funds  or  partly  by  the  industrial  fund 
and  partly  by  the  individual  employer  in  whose  plant  an  accident 
occurred,  and,  at  this  point  I  can  not  make  the  position  of  labor 
clearer  than  through  a  quotation  from  a  recent  address  by  the 
Chairman  of  the  California  Board  of  Accident  Awards.  Mr.  Pills- 
bury  said : 

"Few  employers  have  sensed  the  fact  that  ever  since  the  rise 
of  free  industry  in  the  world  the  industries  of  the  world  have  been 
subsidized  out  of  the  sacrifices  made  by  injured  workmen  and  those 
dependent  upon  them.  Such  is  the  fact.  In  part  this  subsidy  has 
been  paid  by  the  hurt  and  their  dependents,  and  in  part  by  taxes 
paid  for  the  relief  of  the  poor.  Therefore  it  is  true  to  say  that  the 
industries  of  this  and  other  countries  have  in  part  thriven  off 
bonuses  paid  to  them  by  poverty  and  property,  and,  to  that  extent, 
those  industries  are  paupers  and  are  not  paying  their  own  way. 
They  should  be  made  to,  and  the  industry  that  cannot  continue  ex- 
cept it  be  subsidized  out  of  the  blood  and  broken  bones  of  men,  the 
tears  of  widowed  women,  and  the  sobs  of  dependent  children,  were 
best  to  terminate  their  unprofitable  existences." 

The  key  thought  of  requiring  an  employer  in  whose  plant  an  ac- 
cident occurs  to  pay  to  a  limited  amount  in  all  cases  as  certainly  as 
he  must  pay  for  the  wife's  groceries,  the  medical  cost  of  treating 
an  injured  man  is  to  promote  safety,  to  stimulate  his  thought  along 
safeguarding  and  protective  lines.  As  the  financier  of  an  enterprise 
he  will  recognize  and  check  such  a  drain  in  his  balance  sheets.  He 
then  will  think  about  protruding  set  screws,  better  mining  ventila- 
tion, unsafe  boilers,  unfenced  elevators,  unguarded  cogs  and  unpro- 
tected electric  wires,  or  any  other  dangerous  agencies  which  can,  at 
small  expense  and  with  little  thought,  be  rendered  safe. 

When  accidents  are  reduced  to  their  irreducible  minimum  who 


230          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

can  gauge  the  cost  to  industry  and  the  compensation  permissible  for 
those  injuries  which  are  purely  accidental? 

A  compensation  law  continually  and  imperatively  calls  for  sci- 
entific study  of  accident  prevention.  It  is  so  elementary  that  to 
point  out  seems  absurd  that  if  you  prevent  accidents  under  a  law 
like  that  of  Washington  where  industries  are  called  upon  to  pay 
only  enough  for  accidents  you  save  premium  cost  to  the  industries, 
suffering  and  pain  to  the  workmen,  disorganized  plants  as  a  result 
of  these  recurring  casualties. 

Because,  to  prevent  accidents  is  to  save  money  for  the  em- 
ployers. Our  first  annual  report  is  going  to  recommend  safety  legis- 
lation in  this  state  that  will  call  employers  in  conference  to  discuss 
ways  and  means  of  safety  and  thereby  obviate  the  drain  of  acci- 
dents and  the  needless  waste  of  human  lives,  limbs  and  work  energy. 
In  other  words,  we  hope  to  see  minimum  standards  of  safety  estab- 
lished through  democratic  discussions  in  trade  conferences;  the 
penalizing  of  those  who  fall  below  the  standard  and  the  lightening 
of  the  accident  burden  of  those  who  excel  in  safety. 

I  believe  to  a  considerable  degree  the  Washington  Act  discrim- 
inates against  the  employer  whose  humanitarian  instincts  and  en- 
lightened self  interest  have  led  him  to  incur  considerable  expense  in 
installing  safeguards  providing  safety  supervision  and  abolishing 
conditions  conducive  to  accident.  Such  an  employer  must  pay  into 
the  accident  fund  of  his  class  a  premium  equal  to  that  of  the  em- 
ployer with  obsolete  and  atrocious  equipment  and  utter  ignorance 
and  conscienceless  disregard  of  human  life  and  limb. 

A  line  of  cleavage,  if  not  acute  dissension,  arose  on  our  Board- 
over  the  proposition  that  the  employers  and  employes  of  this  state 
need  education  as  to  the  requirements  and  conditions  for  safety. 
On  August  ist,  1912,  after  the  Commission  had  received  formal 
reports  of  over  9,000  accidents  it  issued  its  first  safety  bulletin,  a 
placard  with  a  red  cross  designed  to  be  posted  where  both  master 
and  man  might  stop  and  think.  It  contained  quotations  from  engi- 
neers and  officers  of  great  corporations  like  the  Illinois  Steel  Com- 
pany whose  safety  campaign  in  recent  years  has  resulted  in  a  66% 
accident  reduction. 

It  has  been  said  with  considerable  force  and  repeatedly  pointed 
out  by  critics  of  the  Washington  system  that  where  a  pure  com- 
pensation system  exists,  there  is  not  as  great  a  tendency  to  prevent 
accidents  as  there  ought  to  be  because  there  is  no  premium  as  to 
care.  If  you  take  stock  of  human  nature  as  it  operates  every  day, 
you  will  agree  that  if  John  Smith  has  to  pay  a  certain  amount  of 


THE  WASHINGTON   COMPENSATION   ACT.  231 

money,  whether  he  has  any  accidents  in  his  establishment  or  not,  he 
is  liable  to  be  less  careful,  or,  if  he  is  not,  those  employed  by  him 
as  foreman  and  superintendent  are  liable  to  look  more  to  the 
product  than  to  the  safety  of  the  workingmen. 

The  growing  conscience  of  this  generation  is  insistent  that  the 
weak  shall  not  be  exploited  for  the  benefit  of  the  strong.  Legal 
slavery  passed  away  with  the  gray  gigantic  host  which  defended  it. 
The  employment  of  children  of  tender  years  is  now  almost  every- 
where prohibited  by  penal  statutes.  The  employment  of  men  and 
particularly  of  women  for  unconscionable  hours  each  day  is  an  in- 
dustrial condition  rapidly  passing  away  under  crystallized  public 
sentiment.  The  exploitation  of  ignorant  immigrants  at  less  than 
living  wage  is  condemned  from  the  Atlantic  to  the  Pacific,  although 
this  "pauper  labor"  continues  to  be  syphoned  over  our  high  tariff 
walls.  The  practice  of  one  species  of  fraud  upon  the  unprotected 
public  was  struck  a  death  blow  by  the  Pure  Food  and  Drugs  Act. 
The  lure  into  oblivion  of  the  daughters  of  the  poor  for  the  profit 
of  caterers  of  dissipation  has  caused  assemblies  of  citizens  in  every 
city  and  town  in  this  great  republic  to  vibrate  with  indignation. 

Lastly,  the  system  whereby  industrial  establishments  have 
been  subsidized  not  by  the  consuming  public  so  much  as  by  the 
weakest  members  of  society — those  who  work  with  their  hands 
day  by  day  for  their  bread — so  that  a  workman  struck  down  in 
the  course  of  duty  by  an  industrial  accident  was  merely  pushed 
aside  and  left  to  the  care  of  the  casualty  companies  and  the  damage 
case  lawyers,  and  the  associated  charities — has  at  last  given  way 
to  compulsory  workman's  insurance.  The  Washington  Act,  I  be- 
lieve to  be  incomparably  better  than  any  similar  law  yet  enacted 
by  any  other  American  State.  I  believe  that  the  coming  session 
of  the  Legislature  will  see  the  burden  equalized  by  a  reasonable 
first  aid  bill  amending  its  provision.  I  believe  that  the  same  legis- 
lature will  enact  safety  legislation  that  will  apply  to  industry  the 
broad-gauged  views  and  democratic  principles  that  have  made  a 
success  of  the  public  utility  and  railway  commissions  that  have  so 
successfully  brought  the  transportation  corporations  at  last  under 
reasonable  public  control. 


Workmen's  Compensation. 

EDWARD  T.   BENT, 
CHICAGO. 


I  regret  that  lack  of  time  and  ill  health  have  prevented  my 
outlining  in  any  detail  what  I  would  consider  the  important  features 
of  a  model  bill  providing  for  workmen's  compensation  for  indus- 
trial accidents.  I  have  given  a  good  deal  of  thought  and  study  to 
the  subject  during  the  past  two  years,  as  a  coal  mine  operator,  as  a 
representative  of  the  coal  mine  operators  upon  the  Liability  Com- 
mission of  the  State  of  Illinois  which  framed  the  Act  that  went 
into  effect  May  1st  last,  and  as  Secretary  of  the  Mutual  Liability 
Insurance  Company  of  the  coal  mine  operators  of  this  and  adjacent 
states. 

The  American  Mining  Congress,  at  its  last  annual  session, 
after  due  deliberation,  unanimously  passed  the  following  resolu- 
tion: 

"RESOLVED,  That  we  are  in  favor  of  a  fair  and  just  com- 
pensation to  workingmen  for  injuries  received  while  engaged  about 
their  duties,  one  that  will  be  just  and  equitable  to  both  employer 
and  employe,  and  we  recommend  to  the  Congress  of  the  United 
States  and  to  the  state  legislatures  the  enactment  of  such  legislation 
as  will  secure  this  result." 

The  organization  being  thus  on  record,  I  will  not  discuss  the 
merits  or  demerits  of  the  system,  or  of  the  one  which  it  supplants, 
but  will  confine  myself  to  the  consideration  of  what,  in  my  opinion, 
a  proper  compensation  act  should  consist. 

The  act  should  be  compulsory  and  constitute  the  sole  remedy. 
Of  the  eleven  commissions  that  have  exchanged  views  and  met  in 
conventions,  including  the  Federal  one,  all,  as  I  recall  it,  favored 
a  compulsory  law  as  the  sole  remedy,  if  constitutionally  possible; 
and  more  recent  decisions  seemingly  indicate  that  a  compulsory  act, 
taking  away  the  common  law  remedies,  is  open  to  scarcely  greater 
constitutional  objections  than  are  the  various  elective  measures 
which  have  been  reluctantly  resorted  to  because  of  the  adverse 
decision  of  the  New  York  Court  of  Appeals.  Where  constitutional 
objections  cannot  be  overcome  the  state  constitution  should  be 
amended,  if  possible,  as  New  York  is  doing.  While  the  elective 


WORKMEN'S    COMPENSATION.  233 

acts  now  in  effect  are  valuable  experiments,  to  the  extent  that  they 
are  accepted,  they  create  a  chaotic  condition,  continue  controversy, 
and  throw  neighboring  industries  out  of  competitive  relations  when 
one  employer  accepts  the  Act  and  another  does  not.  The  effect  is 
to  greatly  handicap  the  cause. 

If  the  employer  is  to  pay  for  every  accident,  regardless  of 
fault,  what  is  considered  reasonable  on  the  average,  he  should  not 
be  subjected  to  suit  under  the  common  law  or  other  statutes  in  ex- 
ceptional cases,  at  the  option  of  the  person  injured,  where  the 
measure  of  damages  might  be  large;  nor  is  it  desirable  that  the 
person  injured  should  be  subjected  to  the  temptation  of  ambulance 
chasing  lawyers  leading  him  to  reject  automatic  compensation 
much  better  on  the  average  than  the  average  result  of  litigation. 
To  the  extent  that  the  opportunity  and  the  temptation  to  litigate  are 
left  the  prime  purpose  of  the  compensation  system  is  lost. 

The  basis  for  determining  compensation  in  each  instance 
should  be  established  and  made  as  automatic  as  possible.  If  it  is 
constitutionally  necessary,  as  it  apparently  now  is,  to  permit  final 
resort  to  the  courts  and  trial  by  jury,  such  resort  should  be  made 
just  as  remote,  unattractive  and  difficult  as  possible.  The  em- 
ployer and  employe  should  be  permitted  to  agree  on  the  basis  of 
the  probable  disability  as  determined  by  the  doctor  or  doctors. 
Failing  to  agree  the  question  should  go  automatically  to  arbitration. 
Resort  to  the  courts  should  be  only  on  appeal  from  the  arbitration 
award. 

The  maximum  period  for  both  fatal  and  non-fatal  accidents, 
both  the  minimum  and  maximum  total  compensation  and  the  mini- 
mum and  maximum  compensation  per  week  should  be  established 
in  the  Act.  Most  states  have  made  the  maximum  period  eight  years. 
Illinois  has  made  the  total  minimum  and  maximum  compensation 
$1,500.00  and  $3,500.00  respectively,  and  the  minimum  and  maxi- 
mum weekly  compensation  $5.00  and  $12.00  respectively,  which 
seems  to  me  proper. 

There  should  be  an  initial  period  without  compensation  to  dis- 
courage malingering,  avoid  unnecessary  congestion  of  cases  and 
to  permit  larger  compensation  for  graver  accidents  than  industry 
could  otherwise  afford.  This  free  period  has  been  made  one  week 
in  some  states  and  two  weeks  in  others.  I  favor  two  weeks. 

Compensation  should  cover  total  permanent  disability,  partial 
permanent  disability  and  temporary  disability,  all  of  which  relate  to 
loss  of  earnings  or  earning  power;  but  should  not  cover  disfigure- 
ment, as  such.  Disfigurement  not  affecting  the  earning  power  has 


234          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

no  place  in  a  law  providing  compensation  for  lost  earning  power 
and  its  presence  has  already  been  found  to  be  a  fruitful  source  of 
controversy  and  possible  litigation. 

The  Act  should  specify  a  period  of  disability  to  be  applied  to 
specific  injuries  such  as  the  loss  of  one  or  two  eyes,  of  one  or  two 
legs  and  the  like,  so  that  the  opportunity  for  disagreement  and  oc- 
casion for  arbitration  may  be  reduced  to  a  minimum  and  that  the 
compensation  may  be  automatically  determined  wherever  possible. 

The  compensation  should  be  on  the  basis  of  half  wages  during 
disability.  Some  states  have  made  it  60%  and  65%  for  certain 
classes  of  accidents,  but  such  states  I  believe  provide  shorter  maxi- 
mum periods  and  permit  lower  maximum  compensation,  one  or 
both.  It  is  better  for  both  dependents  and  society  to  pay  compensa- 
tion for  a  longer  period  than  to  pay  a  larger  weekly  amount. 

Compensation  should  be  in  the  form  of  a  weekly  pension 
rather  than  of  a  lump  sum,  and  permit  the  payment  of  a  larger  sum 
only  on  a  proper  showing  to  a  designated  court  of  record  that  the 
paying  of  a  lump  sum  is  in  the  interest  of  the  dependents  or  is 
necessary  to  the  employer  on  account  of  his  going  out  of  business 
or  the  like. 

The  compensation  should  be  paid  by  the  employer  without 
contribution  from  the  employe.  Many  favor  a  small  contribution 
by  the  employe,  and  much  can  be  said  in  its  favor,  but  it  appears 
politically  impracticable  and  there  are  valid  objections  to  it.  In 
Germany  where  the  employe  pays  a  small  proportion,  the  em- 
ployers themselves  are  seeking  to  have  the  law  changed  so  that  they 
shall  pay  it  all  in  order  that  labor  shall  have  no  voice  in  the  admin- 
istration of  the  fund. 

The  act  should  make  invalid  any  attorney's  lien  on  the  award 
by  agreement  between  the  attorney  and  the  person  injured  or  his 
representative  and  the  compensation  of  an  attorney  for  the  plaintiff 
should  be  determined  by  the  trial  judge.  This  will  abolish  a  great 
and  fruitful  inducement  to  litigate. 

State  insurance  and  providing  of  the  funds  by  the  taxation 
of  the  various  industries  should  be  opposed.  Of  the  eleven  com- 
missions in  joint  conferences  during  the  past  two  years,  all  but  two 
(Washington  and  Ohio)  were  opposed  thereto.  The  first  object 
of  society  should  be  to  prevent  avoidable  accidents,  and  in  no  other 
way  can  the  necessary  cost  to  industry  of  workmen's  compensation 
be  so  well  controlled.  In  my  judgment  no  State  Board  can  enforce 
safety  regulations  so  effectively  as  can  and  will  the  employers  of 


WORKMEN'S    COMPENSATION.  235 

each  industry,  from  self-interest,  if  these  employers,  who  furnish 
the  money,  can  collectively  insure  themselves  and  penalize  those 
of  their  number  who  are  careless  or  disregard  statutory  or  other 
safety  regulations.  Furthermore,  it  is  unlikely  that  any  State 
Board  under  existing  political  conditions  would  administer  the 
fund  as  economically  or  take  as  effective  steps  to  prevent  malinger- 
ing as  would  the  employers  collectively.  Moreover,  constitutional 
taxation  would  have  to  be  levied  uniformly  and  the  rates  in  the 
same  industry  throughout  a  state,  though  the  natural  hazard  widely 
varies  between  districts,  as  it  does  in  coal  mines,  and  between  in- 
dividual plants  in  the  same  district,  could  not  be  graded  by  the  state 
and  readjusted  from  time  to  time  as  experience  dictates,  as  it  could 
be  by  the  employers  themselves.  Hence,  I  feel  that  the  Act  should 
not  cover  state  insurance,  but  should  permit  and  encourage,  if  not 
require,  the  formation  of  mutual  companies  of  employers  by  in- 
dustries. Most  of  the  existing  acts,  outside  of  the  two  states  hav- 
ing insurance,  permit  this  and  two  (Massachusetts  and  Wisconsin) 
provide  therefor.  My  preference  for  mutual  insurance  is  the  re- 
sult of  seven  years'  successful  experience  with  it  for  the  coal  mines 
of  Illinois  and  adjacent  states. 

There  should  be  a  State  Board  of  Administration,  paid  by  the 
State,  with  its  powers  carefully  limited.  This  Board  should  sug- 
gest to  the  Legislature  from  time  to  time  such  changes  in  the  law 
as  experience  shows  to  be  desirable.  It  should  collate  and  publish 
accident  and  compensation  statistics.  To  it  should  be  reported  all 
accidents  that  occur  and  it  should  oversee  the  various  arbitrations 
and  designate  (preferably  from  among  its  agents)  the  third  arbi- 
trator in  each  case.  It  should  not,  however,  have  power  to  raise 
the  funds  required  by  the  Compensation  Act,  to  pay  awards,  or  to 
interfere  with  collective  action  by  employers  to  prevent  avoidable 
accidents. 

Compensation  should  cover  only  accidents  arising  out  of  and 
in  the  course  of  employment  and  employes  exposed  to  the  inherent 
hazards  of  the  business.  This  is  the  usual  provision.  The  act 
should  apply  to  all  hazardous  occupations  and  should  indicate  as 
clearly  as  practicable  what  employments  are  deemed  to  be  haz- 
ardous. 

The  Act  should  provide,  in  addition  to  the  pension  provided, 
for  necessary  first  aid  and  medical,  surgical  and  hospital  service, 
within  a  specified  maximum  period  and  amount. 

Compensation  should  be  based  upon  the  average  annual  earn- 
ings and  not  upon  a  basis  of  the  daily  wage,  so  as  not  to  work  in- 


236          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

justice  to  employments  where  it  is  customary  to  work  irregularly, 
as  in  the  coal  mining  business  and  the  building  trades. 

Examination  of  the  person  injured  by  a  medical  practitioner 
selected  by  the  employer  should  be  permitted  at  reasonable  intervals 
and  refusal  to  submit  to  such  examination  should  suspend  com- 
pensation while  it  continues. 

The  employer  should  be  liable  for  accidents  to  employes  of 
contractors  employed  by  him  and  of  their  sub-contractors,  if  re- 
covery cannot  be  had  from  said  contractors  and  sub-contractors. 

Casual  employes  and  clerical  and  administrative  help  not  sub- 
jecting the  employe  to  the  inherent  hazards  of  the  business  should 
be  exempt  from  the  Act. 


Workmen's  Compensation. 

MR.   DAVID  ROSS, 
COMMISSIONER  OF  LABOR  OF  ILLINOIS. 


Mr.  Chairman,  I  am  deeply  interested  in  this  general  question 
and  particularly  in  the  declared  attitude  of  this  Congress  regard- 
ing legislation  along  the  lines  indicated  by  the  very  able  address  of 
Mr.  Wallace.  It  was  my  privilege  at  the  1908  Convention  of  this 
Congress  held  at  Pittsburgh  to  offer  the  first  resolution  bearing 
upon  the  question  of  Workmen's  Compensation.  The  subject  was 
quite  generally  discussed  at  the  Goldfield  Convention  the  year  fol- 
lowing, and  at  the  Los  Angeles  Convention  in  1910  the  Congress 
went  on  record  as  approving  in  a  general  way  the  principle  that  in 
respect  to  industrial  accidents  the  burden  should  fall  not  on  the 
individual  victim,  but  on  the  industry  responsible  for  such  acci- 
dents. 

This  indorsement  by  the  Congress,  representing  as  it  does  the 
employing  classes,  proved  of  great  help  in  securing  the  passage  of 
laws  on  this  subject  in  the  several  States. 

This  subject  is  so  big  and  broad  that  one  is  almost  at  a  loss 
to  know  just  where  to  begin  or  where  to  stop,  and  I  am  going  to 
rely  largely  on  the  limit  of  your  patience  to  tell  me  when  to  quit. 

Frederick  L.  Hoffman,  an  acknowledged  authority  on  statistics 
of  all  kinds — and  I  shall  not  weary  you  this  afternoon  with  quoting 
statistics — reports  that  there  were  thirty-five  thousand  people  killed 
in  the  United  States  last  year,  and  that  almost  two  millions  of  peo- 
ple were  injured.  He  estimates  that  of  these  numbers  fully  one- 
half  were  the  direct  results  of  industrial  employments.  Confining 
our  computation,  therefore,  to  the  percentage  of  industrial  fatal 
accidents,  those  figures  show  that  we  lost  on  an  average  three  hun- 
dred and  twenty-six  lives  a  week  or  fifty-six  every  working  day. 
Only  a  few  months  ago  the  civilized  world  was  startled  by  the  sink- 
ing of  the  Titanic,  involving  the  loss  of  sixteen  hundred  lives. 
Notwithstanding  the  real  or  the  alleged  charge  that  this  is  a  com- 
mercial age,  life  is  still  more  valuable  than  property.  (Applause.) 
The  fact  that  a  modern  steamship,  representing  an  investment  of 
more  than  ten  millions  of  dollars,  was  destroyed  in  mid-ocean 
through  its  contact  with  a  mass  of  floating  ice,  of  itself  excited  no 


238          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

special  interest;  but  when  the  sad  story  of  those  few  tragic  hours 
was  told,  a  profound  sense  of  the  human  loss  instinctively  oblit- 
erated all  other  considerations  and  that,  too,  Mr.  Chairman,  quite 
regardless  of  the  earthly  stations  of  many  of  the  ill-fated,  personi- 
fying great  wealth  in  the  case  of  Astor,  or  great  learning  in  the 
case  of  Stead,  or,  perchance,  the  humble  ambition  of  some  un- 
known peasant,  hoping  to  find  if  he  reached  the  new  land,  a  larger 
liberty  and  a  better  life.  (Applause.)  From  the  quoted  figures 
we  glean  the  gruesome  fact  that  every  twenty-eight  working  days 
the  number  of  lives  sacrificed  in  this  country  in  the  pursuit  of 
peaceful  employments — equals  the  death  toll  of  the  Titanic  disaster. 
The  only  difference  being  in  point  of  time,  in  one  case  the  work  of 
destruction  required  three  hours  and  in  the  other  twenty-eight  days. 
While  this  is  important  so  far  as  its  effect  on  public  feeling  is  con- 
cerned the  loss  with  all  its  consequences  is  the  same.  We  have  the 
greatest  material  development  here  in  the  United  States  that  the 
world  has  ever  seen.  And  we  are  proud  of  it;  but  in  our  pride, 
and  in  our  enthusiasm,  let  us  not  lose  sight  of  the  other  side,  of  the 
tragic  side  of  this  great  problem,  of  what  you  have  to  pay  every 
year  and  month  and  day  in  human  life  as  a  price  or  as  a  penalty 
for  our  industrial  pre-eminence. 

And  the  simple  business  proposition,  Mr.  Chairman,  is,  how 
are  we  going  to  meet  it?  Are  we  going  to  continue  the  obsolete 
methods  of  the  past  with  all  their  waste  and  friction  and  hate;  or 
are  we  going  to  adopt  some  method  that  will  meet  the  requirements 
of  the  present  minute,  and  adjusted  to  the  necessities  of  the  in- 
dustrial situation  as  it  is  presented  now? 

MR.  ROBERT  NEILL :  Now,  don't  look  at  your  watch ;  go 
right  ahead. 

MR.  DAVID  ROSS:  Now,  we  are  probably  under  a  time 
limit.  Brother  Taylor  called  me  once  before. 

MR.  ROBERT  NEILL:     Go  ahead. 

MR.  DAVID  ROSS:  Now,  then,  what  is  the  situation? 
You  know  as  a  matter  of  experience,  and  out  of  accumulated  wis- 
dom of  the  past  has  come  the  maxim  that  experience  is  a  great 
teacher.  And  we  may  go  further  and  say  that  experience  is  the 
only  teacher.  After  all  we  can't  learn  very  much  from  books.  It 
has  got  to  come  out  of  the  lives  and  human  relationship  of  men. 
That's  where  our  information  comes  from.  We  may  indulge  the 
pleasure  of  reading  other  men's  dreams,  but  it  is  not  knowledge. 
We  have  got  to  experience  the  facts  for  ourselves  before  we  know. 
The  little  boy  who  persisted  against  his  father's  repeated  warnings 


WORKMEN'S    COMPENSATION.  239 

in  playing  about  the  heels  of  a  vicious  mule,  finally  got  what  was 
coming  to  him.  (Laughter.)  The  steel  circle  that  reinforced  the 
hoofs  of  that  bad-tempered  brute  caught  the  boy  fair  in  the  face, 
and  displaced  many  of  his  feaures.  Some  weeks  after  that  hap- 
pening, when  he  was  able  to  sit  up,  he  asked  his  father  if  he  looked 
bad.  "Well/'  the  old  man  said,  "my  son,  you  don't  look  near  as 
pretty  as  you  used  to,  but  you  know  a  heap  more."  (Laughter.) 
You  have  to  surrender  something  in  the  interest  of  learning 
(laughter),  but  when  we  procure  it  in  that  way  we  get  a  certainty 
that  we  are  never  liable  to  forget,  and  we  are  in  that  process  of 
evolution  now,  from  standards  of  personal  and  business  experi- 
ence with  the  present  methods  created  through  the  inapplicability 
of  the  present  employer's  liability  laws  and  we  are  feeling  the  eco- 
nomic necessity  of  trying  another  plan. 

What  is  the  actual  situation?  I  needn't  take  up  your  time  in 
repeating  it.  The  intelligent  work  of  accident  prevention  has  been 
started  in  this  country  and  it  is  bearing  splendid  fruits,  and  we 
bid  God-speed  to  all  the  men  and  women  who  are  engaged  in  that 
holy  work,  but  when  we  have  done  all  that  human  ingenuity  can 
do,  there  is  still  that  tremendous  intimidating  force  born  of  indus- 
try itself,  and  that  despite  all  the  care  we  can  exercise,  accidents 
are  going  to  happen,  and  when  they  do  happen  under  circumstances 
of  whatever  kind,  the  simple  business  question  is,  how  are  you 
going  to  meet  them?  What  plan  do  you  propose  to  adopt  and  en- 
dorse that  will  bring  the  best  and  most  immediate  results  to  those 
directly  concerned  at  the  least  possible  expenditure  of  energy,  time 
and  money?  This,  my  friends,  is  the  great  conservation  question 
now  before  the  American  people  (applause),  to  avoid  waste  and 
the  loss  incident  to  the  old  methods  through  which  we  have  sought 
to  meet — and  as  the  record  shows,  in  the  most  unsatisfactory  way 
—the  question  that  confronts  us  now. 

Under  the  procedure  of  the  common  law  when  a  workman  is 
injured  he  has  the  privilege  of  instituting  suit  against  his  employer 
for  damages,  and  his  chance  for  recovery  is  conditioned  entirely 
upon  his  ability  to  prove  that  the  negligence  of  the  employer  was 
the  direct  cause  of  the  injury.  Modern  notions  of  legal  negligence 
and  the  proof  required  to  establish  it  has  made  it  impossible  in  a 
majority  of  instances  for  injured  workmen  to  recover  anything 
under  that  plan.  It  totally  disregards  the  fact  that  in  fully  fifty 
per  cent  of  accident  cases  neither  the  employe  nor  the  employer  is 
legally  liable,  and  the  purpose  of  the  new  legislation  is  to  put  the 
burden  and  the  loss  not  on  the  individual  but  on  the  industry  re- 


240         PROCEEDINGS  AMERICAN  MINING  CONGRESS 

sponsible  for  such  occurrence.  (Applause.)  The  starting  of  a 
damage  suit  is  a  declaration  of  war  and  the  ultimate  effect  is  the 
separation  of  the  person  bringing  suit  from  his  employment.  More 
jobs  are  lost  on  this  account  than  from  any  other  cause.  As  a 
rule  the  person  acquiring  this  right  has  no  money  but  has  no  diffi- 
culty in  rinding  some  obliging  lawyer  willing  to  prosecute  it  on  a 
contingent  fee,  and  when  once  started  no  one  can  foretell  when 
it  will  end.  Let  me  cite  you  two  brief  examples  of  the  loss  in  time 
and  money  of  this  procedure.  Twenty-two  years  ago  a  boat  loaded 
with  naphtha  and  other  combustible  material,  destined  for  some 
port  across  Lake  Michigan,  was  forced  to  seek  shelter  on  account 
of  an  approaching  storm,  and  tied  up  in  the  Chicago  river;  while 
thus  stationed,  for  some  reason,  no  one  knew,  the  boat  exploded, 
killing  twenty-one  men.  From  that  time  until  this  moment  the 
case  has  been  tied  up  in  the  courts.  Everyone  connected  with  the 
inception  of  the  case,  the  jurymen,  the  witnesses,  most  of  the 
judges  have  all  answered  the  last  roll  call.  There  remain  only 
the  court  records,  almost  everything  connected  with  it  has  been 
forgotten  except  the  case  itself,  and  that,  like  the  poet's  brook, 
threatens  to  go  on  forever.** 

Twelve  years  ago  two  men  were  employed  in  repairing  the 
interior  of  an  open  hearth  furnace  in  one  of  the  South  Chicago 
steel  mills.  At  that  time  the  power  was  gas  supplied  from  reser- 
voirs located  in  an  upper  story.  The  gas  pipe  leading  into  the 
mouth  of  that  furnace  in  which  these  men  were  working  with  open 
lights  on  their  heads  was  properly  disconnected.  Without  warn- 
ing and  for  some  reason  never  accounted  for  a  column  of  gas  shot 
into  the  mouth  of  the  furnace  and  there  was  an  explosion.  One 
of  the  men,  fortunately,  was  killed  outright;  the  other,  a  most 
pitiable  object,  lived  to  bring  suit.  The  jurymen,  who  had  a  chance 
to  survey  the  wreck,  departed  from  the  usual  practice  and  re- 
turned what  is  known  as  a  quantitative  verdict — that  is  to  say  each 
man  estimated  how  much  he  ought  to  get — these  several  sums 
were  added  and  divided  by  twelve  and  the  quotient  represented  the 
verdict  amounting  to  $22,500.  It  dragged  its  weary  way  from  one 
court  to  another,  and  nine  years  from  the  time  it  started  the  highest 
court  in  the  state  affirmed  the  ruling  that  the  steel  company  was  in 
no  sense  responsible  for  the  accident.  It  cost  that  company  nearly 

*This  noted  suit,  which  has  occupied  the  attention  of  the  courts 
for  a  period  covering  22  years,  was  finally  concluded  by  a  ruling  in  the 
Federal  court  January,  1913,  granting  the  heirs  damages  amounting  in 
the  aggregate  to  $J  10,000. 


WORKMEN'S    COMPENSATION.  241 

six  thousand  dollars  to  prove  that  it  was  not  liable.  As  a  result  of 
the  accident  the  wife — and  we  were  all  touched  yesterday  with  the 
eloquent  speech  of  our  friend,  Congressman-elect  Decker  of  Mis- 
souri, who  impressively  described  the  important  part  that  woman 
takes  in  the  work  and  advancement  of  mankind — in  no  sense  re- 
sponsible (possibly  the  steel  company  was  not  responsible)  had  to 
take  up  the  burden  of  supporting  the  family,  and  under  the 
double  pressure  of  grief  and  toil  her  health  failed  and  with  it  her 
mind.  She  is  now  an  inmate  of  the  State  Asylum  and  the  children 
depend  for  a  living  upon  the  charity  of  the  good  people  of  Chicago. 
No  more  severe  indictment  than  this  it  seems  to  me  can  be  drawn 
against  a  supposed  civilized  society  and  the  lesson  it  teaches  is  that 
the  costs  of  accidents  cannot  be  evaded — they  must  be  paid  in  some 
form  or  another.  Instead  of  encouraging  the  gambler's  hope  of 
securing  in  rare  instances  large  verdicts  every  man  who  is  disabled 
because  of  his  employment  should  be  provided  for  while  disquali- 
fied, and  instead  of  a  conflict  over  the  question  of  legal  negligence, 
there  should  be  a  specific  scale  of  benefits  leaving  out  of  consid- 
eration the  personal  fault  of  the  employer  or  employe  and  an  en- 
dorsement of  the  idea  which  all  compensation  laws  recognize  that 
this  class  of  costs  should  be  listed  as  other  items  of  expense  are 
and  charged  up  to  the  business,  thus  requiring  society  to  share  in 
the  losses  as  well  as  the  gains  of  industry.  In  this  kind  of  legisla- 
tion, like  that  of  the  parcels  post,  our  country  is  fully  a  quarter  of 
century  behind  the  times.  We  have  now  awakened  to  a  real  sense 
of  the  situation,  and  the  plans  now  on  trial  in  fifteen  different 
states  are  notice  to  the  world  that  we  are  about  to  take  our  proper 
place  among  the  more  progressive  countries.  Regardless  of  the 
ultimate  result  of  present  plans  one  thing  is  certain,  we  shall  never 
return  to  the  old  system — that  has  passed  out  with  the  conditions 
that  made  it  possible — never  to  come  back.  There  are  now  in 
effect  two  different  plans — one  optional,  the  other  compulsory- 
one  leaving  the  matter  of  insurance  to  the  judgment  of  the  indi- 
vidual employer,  the  other  compelling  contributions  to  a  fund  to 
be  distributed  through  the  agency  of  the  State.  All  of  the  other 
states  with  more  or  less  modification  base  their  enactments  on  the 
optional  method.  Washington  stands  alone  as  an  exponent  of  the 
compulsory  principle  both  as  to  benefits  and  the  methods  of  guar- 
anteeing payments.  Personally,  assuming  to  speak  for  no  one  ex- 
cept myself,  I  think  the  Washington  law  comes  nearer  solving  the 
issue  than  any  other  American  Act  upon  that  question.  (Applause.) 
If  the  liability  of  the  employer  is  greater  (which  I  do  not  admit) 


242          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

under  compensation  than  under  the  common  law  as  we  understand 
the  term,  the  plan  of  escaping  such  liability  through  an  election 
should  be  prohibited  partly  because  it  is  not  good  public  policy  and 
partly  because  it  operates  as  a  handicap  or  descrimination  against 
the  competing  employer  who  does  accept  it.  The  immediate  effect 
of  a  compulsory  plan  is  to  place  all  employers  in  respect  to  this 
form  of  liability  on  a  basis  of  equality,  which  in  a  nation-wide 
scramble  for  business  is  an  important  consideration.  The  legal 
question  as  to  whether  such  a  law  would  be  constitutional  is  but 
another  attempt  to  tie  us  to  the  dead  issues  of  the  past.  We  are 
engaged  in  a  vast  humanitarian  enterprise  and  have  no  patience 
with  the  interruptions  which  the  clutches  of  legal  procedure  inter- 
pose. 

Although  the  preponderance  of  judicial  opinion  at  this  time 
would  seem  to  sustain  such  enactments — the  only  notable  exception 
to  this  tendency  is  the  opinion  of  the  New  York  Court  of  Appeals 
and  that  decision  has  been  almost  unanimously  repudiated  by 
other  courts  and  individuals  suspected  of  possessing  good  law 
knowledge.  The  only  other  state  passing  adversely  upon  this  legis- 
lation was  that  of  Montana — so  ably  represented  in  this  Conven- 
tion by  our  good  friend,  Lieutenant  Governor  Allen.  It  was  the 
first  state  in  fact  to  move  in  this  matter  and  as  early  as  1909  passed 
a  law  providing  for  a  levy  of  a  tax  on  coal — a  measure  framed 
somewhat  along  the  lines  of  that  reported  at  our  last  Congress 
from  the  coal  tax  committee. 

The  Supreme  Court  of  Montana,  while  it  indorsed  the  princi- 
ple of  the  law,  felt  compelled  to  declare  it  invalid  solely  because  it 
was  phrased  in  such  a  way  as  to  give  an  injured  workman  a  double 
cause  of  action  against  his  employer — that  he  could  take  in  the  first 
instance  under  the  compensation  law — and  then  maintain  a  com- 
mon law  action  for  additional  damages.  No  friend  of  compensa- 
tion laws  has  any  grounds  for  quarrel  with  the  court  because  of 
that  decision. 

To  the  credit  of  our  people  it  can  be  said  that  of  late  we  are 
mixing  a  good  deal  of  humanity  with  our  law.  We  are  looking 
more  and  more  to  the  present  and  future  results  of  policies  as  they 
affect  the  public  interest  and  giving  less  attention  to  mere  abstract 
issues,  and  that  former  legal  ideas  are  adjusting  themselves  quite 
consistently  to  the  newer  social  and  economic  ideals. 

This  is  obvious  in  much  of  our  recent  social  legislation  and 
the  changed  standpoint  from  which  these  laws  are  viewed  and 
interpreted.  It  is  not  so  long  ago  since  the  law  and  the  courts  held 


WORKMEN'S    COMPENSATION.  243 

that  women — and  men  too — had  the  absolute  right  to  contract  their 
services  for  as  many  hours  per  day  as  they  chose  to  work — in  sus- 
taining this  theory  we  felt  we  were  affirming  the  sacred  right  of 
individual  contract.  We  are  still  as  jealous  as  ever  of  the  rights  of 
the  individual  only  we  have  enlarged  our  vision  somewhat  and  in 
connection  with  that  are  more  than  ever  concerned  about  the  gen- 
eral interest  and  the  public  good. 

We  are  looking  in  a  very  large  measure  to  you  men  of  the 
West  to  lead  the  way,  and  your  sister  state,  Oregon,  on  the  ques- 
tion of  limiting  the  hours  of  woman's  work,  set  a  high  example. 
Not  only  did  the  Supreme  Court  of  that  state  affirm  the  right  of 
the  Legislature  to  fix  such  limits  but  the  United  States  Federal 
Court  on  appeal  sustained  it.  This  gave  us  in  Illinois  some  en- 
couragement. Fifteen  years  ago  our  court  declared  a  similar  law 
unconstitutional.  Two  years  ago  our  Legislature  enacted  a  similar 
law,  except  as  to  the  time  limit,  and  our  Supreme  Court  as  now 
constituted  approved  it.  The  court  did  not  exactly  reverse  its 
former  decision,  it  simply  rendered  another  opinion  in  harmony 
with  fuller  information  and  a  clearer  insight  into  the  issues  in- 
volved. (Applause.)  There  is  now  pending  in  the  Federal  Court 
an  appeal  from  this  state  involving  the  constitutionality  of  your 
compulsory  compensation  law.  The  act  is  an  open  repudiation  of 
all  previous  precedents  and  practices.  From  a  legal  point  it  is 
almost  as  revolutionary  as  the  Oregon  act,  denying  the  right  of  in- 
dividual contract,  and  we  are  waiting  with  some  anxiety  informa- 
tion as  to  what  view  that  court  will  take  of  it. 

We  are  not  permitted  either  to  anticipate  or  prophesy  but  may 
be  pardoned  for  indulging  the  hope  that  the  light  of  these  new  re- 
lationships which  prevailed  in  the  case  of  Oregon  may  control  in 
the  case  of  Washington.  (Applause.) 

Closely  connected  with  all  plans  of  Workmen's  Compensation 
is  the  question  of  protection  against  all  accidents  unavoidable  or 
not.  This  concerns  the  employer  who  under  our  elective  plan  is 
responsible  and  must  make  a  money  settlement  with  the  person 
injured  or  his  heirs.  It  is  an  individual  liability  for  which  he  must 
make  provision.  This  protection  is  found  in  the  different  forms  of 
insurance — and  our  law  on  that  subject  was  amended  in  a  manner 
intended  to  meet  the  requirements  of  the  Compensation  law — per- 
mitting various  employers  to  form  mutual  associations — and  au- 
thorizing under  certain  conditions  inter-insurance  exchanges,  etc. 
Quite  a  fierce  controversy  has  been  going  on  between  these  various 
companies.  The  old  line  stock  companies  maintain  that  they  only, 


244          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

because  of  their  strong  financial  standing,  are  able  to  meet  the 
obligations  imposed  by  our  new  liability  legislation.  The  mutuals 
allege  that  much  of  the  premium  exacted  by  old  line  concerns  is 
absorbed  in  high  salaried  officials  and  in  other  expenses  that 
should  not  be  incurred,  while  the  inter-insurers,  at  lower  rates, 
hope  to  supersede  both.  I  do  not  care  to  go  into  these  contentions. 
If  the  plan  is  to  furnish  the  most  protection  at  the  least  cost  you 
seem  to  have  provided  it  in  the  Washington  law.  Under  it  not  the 
individual  employer,  but  the  group  of  industries  with  which  he  is 
listed  is  liable  for  all  accidents  occurring  in  that  group,  thereby  ob- 
serving the  rule  of  uniformly  distributing  the  loss.  Furthermore 
under  the  Washington  law  every  penny  contributed  by  employers 
finds  its  way  back  to  the  homes  of  injured  men.  There  is  no  capital 
tied  up  and  none  employed  for  private  profit. 

I  learn  from  personal  inquiry  that  in  respect  to  some  indus- 
tries of  this  state  one  assessment — equal  to  a  monthly  premium 
paid  to  a  casualty  company — on  the  basis  of  last  year  losses  yields 
sufficient  revenue  to  meet  similar  obligations  for  several  years  to 
come.  It  was  the  fear,  I  am  informed,  on  the  part  of  employers  of 
the  Commission's  power  to  assess  that  caused  them  to  oppose  the 
law  when  it  was  first  offered.  On  my  trip  to  Spokane  it  was  my 
fortune  to  meet  one  of  your  leading  employers,  and  this  will  in- 
terest Mr.  Wallace.  Without  knowing  each  other  we  began  talk- 
ing about  compensation  laws.  The  subject  is  as  general  a  topic  of 
public  interest  as  the  liberation  of  the  Alaskans.  (Applause.) 
Everybody  is  discussing  it.  It  was  the  poet  who  said, 
"Ever  the  Truth  comes  uppermost, 
And  ever  is  Justice  done." 

Our  friends  in  Alaska  may  feel  justified  in  the  belief  that  it 
is  slow  in  coming,  but  it  is  surely  on  the  way.  (Applause.)  I 
have  no  firmer  faith  or  hope  in  this  Republic  than  that  the  great 
body  of  the  American  people  are  in  favor  of  doing  the  right  thing. 
(Applause.)  There  may  be  delays,  and  now  and  then  departures, 
we  may  get  switched  from  the  main  line,  but  it  is  only  for  a  time 
and  that  seems  so  long  to  those  that  wait.  When  the  facts  filter 
into  the  conscience  of  the  American  people,  depend  upon  it  justice 
will  be  done,  not  only  in  regard  to  the  people  of  Alaska  and  this 
public  land  region,  but  on  all  the  other  stirring  questions  that  press 
for  solution  now.  (Applause.)  He  told  me  the  employers  were 
against  the  Washington  Workmen's  Compensation  law  because  as 
a  new  proposition  they  were  afraid  of  it.  Judgment  founded  on 
Fear  is  usually  misplaced.  We  are  frequently  most  hurt  by  the 


WORKMEN'S    COMPENSATION.  245 

things  that  don't  happen.  He  explained  that  he  opposed  it  because 
under  the  law  the  Commission  could  have  levied  upon  his  com- 
pany for  seventy-five  thousand  dollars  annually,  whereas  under 
its  actual  operation  in  conjunction  with  others  engaged  in  the  same 
business  he  has  been  required  during  the  past  year  to  contribute 
between  seven  and  eight  thousand  dollars  on  account  of  accidents — 
or  a  sum  considerably  less  than  it  formerly  cost  them  to  contest 
and  settle  damage  claims.  He  is  now  an  enthusiastic  supporter  of 
the  law  and  all  employers  in  this  state  are  well  pleased  with  results 
so  far. 

Is  there  any  reason  to  believe  it  will  not  continue  a  success? 
Are  there  any  unforeseen  liabilities  likely  to  arise  that  will  sud- 
denly bring  about  the  failure  of  this  plan? 

Some  insurance  agents  appear  to  think  so  and  believe  the  pol- 
icy is  foredoomed  to  failure.  One  of  the  most  important  require- 
ments of  the  new  plan  is  that  guarding  against  the  possibility  of 
insolvency — that  the  compensation  due  injured  workmen  shall  be 
paid  without  fail.  This  is  absolutely  vouchsafed  by  the  Washing- 
ton law.  The  bankruptcy  of  employers  here  and  there  will  not  in 
the  least  affect  the  complete  fulfillment  of  the  pledge  that  the  bene- 
fits promised  shall  be  paid.  What  stronger  guarantee  could  any 
one  require? 

Your  act  admittedly  is  not  perfect:  it  is  lamentably  weak  in 
its  omission  to  provide  adequate  first  aid  and  medical  service.  These 
are  details  that  I  hope  will  be  supplied  later.  But  as  a  general  en- 
actment I  think  it  is  the  best  we  have — better  than  that  of  Illinois 
which  is  a  serious  admission  for  me  to  make — because  our  law, 
everything  considered,  has  worked  out  in  a  fairly  satisfactory  way. 
I  congratulate  the  good  people  of  Washington  for  their  sound  sense 
in  enacting  this  law  which,  with  some  modifications,  can  be  safely 
adopted  as  a  model  for  other  states. 

I  thank  you.     (Applause.) 


Workmen's  Compensation. 

PRESIDENT    S.    A.    TAYLOR. 


I  just  want  to  say  a  few  words  in  connection  with  the  subject 
under  discussion  this  afternoon.  In  my  early  boyhood  it  was  my 
good  fortune  to  begin  my  life  work  in  the  mines,  and  for  nearly 
forty  years  I  have  followed  mining  in  one  way  or  another.  That 
has  given  me  the  opportunity  of  observing  some  of  the  conditions 
of  mining  camps  and  knowing  some  of  the  conditions  that  con- 
front the  miner  in  his  every  day  work,  and  this  very  knowledge 
helped  me  very  greatly  when  I  came  in  later  years  to  become  the 
manager  and  part  owner  of  some  mines.  A  number  of  circum- 
stances in  connection  with  the  life  of  the  miners  were  brought  to 
my  attention  at  different  times,  but  none  greater  than  those  of  the 
accidents  which  occur  in  mines,  especially  coal  mines.  We  have 
some  things  in  coal  mines  which  you  of  the  precious  metal  mines  do 
not  have  to  contend  with  to  any  great  extent,  and  the  public  hear 
little  of  the  ordinary  accident  that  occurs  in  and  around  a  mine. 
It  is  only  when  an  explosion  of  gas  or  dust  takes  place  and  a  great 
many  lives  are  snuffed  out  that  the  general  public  has  any  concep- 
tion of  the  dangers  in  connection  with  mining.  They  have  little 
idea  also  of  the  distress  occasioned  by  such  an  accident  as  those 
that  happen  in  our  mines,  and  no  one  who  has  ever  looked  down 
into  death's  dark  chamber  from  which  they  are  bringing  out  the 
blackened  bodies,  charred  by  the  explosion,  will  fail  to  have  a 
proper  conception  of  the  feelings  of  sympathy  that  should  be  ex- 
tended to  the  unfortunate  victims  of  these  explosions  in  the  mines. 

Knowing  this  and  having  experienced  such  things  as  this,  it 
was  my  privilege  or  duty  a  number  of  years  ago  to  prepare  a  paper 
for  the  Mining  Institute  of  America  on  the  subject  of  taxation. 
This  is  probably  seven  or  eight  years  ago.  In  that  paper  I  took 
advantage  of  the  opportunity  to  discuss  compensation,  and  I  worked 
out  from  a  table  which  I  had  compiled  from  the  statistics  of  Penn- 
sylvania from  the  year  1880  up  to  that  time,  and  which  I  have 
completed  for  thirty  years,  of  the  accidents  that  occur  in  the  mines 
of  Pennsylvania,  how  they  occur  and  what  they  were,  how  much  it 
would  be  necessary  to  tax  the  output  of  those  mines  in  order  to 
take  care  of,  in  a  fair  way,  those  who  were  dependent  upon  that 
industry.  The  speakers  preceding  me  have  asserted  the  right  idea 


WORKMEN'S    COMPENSATION.  247 

to  my  way  of  thinking,  and  I  have  given  this  subject  considerable 
thought,  that  the  industry  should  take  care  of  its  maimed  and  killed 
or  those  dependent  upon  its  killed.  With  that  in  view  I  discussed 
the  subject  and  possibly  had  something  to  do  with  the  bringing  of 
it  before  the  American  Mining  Congress,  but  the  situation  and 
provisions  as  outlined  by  several  of  the  laws  recently  passed  do  not 
contain  all  of  the  provisions  that  I  think  are  important,  and  which 
should  be  embodied  in  law  if  equity  is  going  to  be  administered  to 
all  parties  interested  in  the  outcome  of  such  a  law. 

It  is  all  well  and  good  to  talk  about  fixing  a  stipulated  amount 
of  twenty  dollars  per  month  for  a  widow  for  her  lifetime,  if  that 
can  be  accomplished  in  some  way  and  through  some  source  which 
will  make  it  constant,  but  I  have  in  mind  two  instances,  one  of  a 
great  explosion  in  which  almost  two  hundred  men  were  killed,  that 
mine  belonging  to  a  rich  company,  or  rather  a  company  owning  a 
number  of  mines  who  were  able  in  and  among  themselves  to  take 
care  of  the  persons  connected  with  that  accident.  I  was  at  the  mine 
after  that  accident  and  know  a  great  deal  about  the  conditions  of 
it,  and  that  company  settled  those  claims  because  they  were  enabled 
to  pay  a  certain  amount  to  take  them  up  and  keep  them  out  of  the 
hands  of  shyster  lawyers  and  the  court,  but  it  cost  them  almost 
two  hundred  thousand  dollars  to  do  that.  The  Compensation  Acts 
of  today  that  require  a  stipulated  amount  would  have  pretty  nearly 
ruined  that  company,  although  it  was  a  rich  one. 

I  know  another  company  that  was  not  so  strong  that  had  an 
accident  in  which  about  one  hundred  and  twenty-five  lives  were 
taken.  That  company  was  not  strong  enough  to  pay  the  penalty 
that  would  be  expected  of  it  under  any  one  of  these  Compensation 
Acts.  What  would  have  been  the  effect  on  that  company?  If  they 
had  taken  the  entire  property  that  belonged  to  that  company  they 
could  not  have  paid  much  over  five  hundred  dollars  to  each  de- 
pendent person  as  the  result  of  that  accident.  And  consequently  it 
seems  to  me  that  if  we  are  going  to  establish  a  condition  or  a  law 
that  will  result  in  the  best  and  most  good  to  the  owners,  the  de- 
pendents and  the  public,  we  must  do  it  through  another  source, 
and  my  conception  of  this  is,  that  this  law  to  be  effective,  and  to 
do  the  most  good,  should  require  that  the  money  resulting  from  a 
fair  assessment,  and  thus  become  a  part  of  the  cost  of  production, 
shall  be  paid  into  the  State  Treasury.  Now,  I  don't  mean  to  thrust 
paternalism  on  any  person  or  to  advocate  that,  but  what  I  wish  to 
get  at  is  this :  The  industry  should  take  care  of  its  own  dependents 
resulting  from  accidents,  and  if  through  the  course  of  years  when 


248          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

the  accidents  are  small,  a  certain  stipulated  amount — whether  it  be 
fixed  on  the  production  of  the  mine,  or  whether  it  be  a  percentage 
of  the  pay  roll — is  paid  into  a  treasury,  and  this  should,  I  believe, 
be  the  State  Treasury,  because  if  the  dependents  as  it  now  stands 
are  not  taken  care  of  by  the  individuals  they  become  a  public 
charge  and  in  the  end  are  taken  care  of  by  the  State  or  some  other 
public  charity. 

This  fund  can  be  handled  and  taken  care  of  through  a  particu- 
lar source,  such  as  the  Commission  in  your  State  of  Washington 
is  now  doing.  That  will  guarantee  to  the  person  and  his  family, 
who  are  maimed  or  killed,  a  stipulated  amount.  This  year  the 
amount  needed  may  be  less  than  the  fund  produced.  Next  year 
we  may  have  some  of  these  great  accidents  which  will  wipe  out  a 
great  deal  of  the  surplus  of  that  fund,  but  still  at  the  same  time 
the  persons  who  should  be  taken  care  of  will  be  taken  care  of 
through  that  fund.  In  other  words,  it  really  becomes  a  matter  of 
state  insurance,  paid  for  by  the  operation  whatever  it  may  be, 
whether  mines  or  manufacturing  concerns.  In  the  State  of  Penn- 
sylvania— and  this  was  probably  one  of  the  things  that  brought  it 
to  my  attention  as  much  as  anything  else — we  had  for  years,  and 
especially  in  my  own  county,  some  firms  of  lawyers  who  had 
runners  somewhat  similar  to  a  commercial  house  with  their  travel- 
ing salesmen,  who  went  about  in  the  different  camps  and  communi- 
ties, and  in  case  of  an  accident  these  runners  were  soliciting  the 
business  for  those  lawyers.  And  on  what  terms?  I  have  heard, 
whether  it  be  true  or  not,  that  in  some  cases  they  took  as  much  as 
seventy-five  per  cent  of  the  verdict  that  they  would  receive.  The 
party  that  should  receive  the  money  and  who  would  have  been  paid 
under  the  proposed  law  by  the  person  employing  that  party,  was 
getting  a  very  small  amount,  these  shyster  lawyers  taking  the  most 
of  it  for  their  services.  In  other  words,  the  firm  who  employed 
the  injured  man  would  very  much  prefer — 1  don't  know  where 
that  would  not  be  the  truth — to  have  paid  that  money  direct  to  the 
widow  or  to  the  children,  or  to  the  maimed  of  that  industry  than  to 
these  legal  parasites. 

The  question  of  justice  is  thwarted  by  this  practice,  and  even 
today  we  have  them  in  our  midst,  although  they  are  not  as  preva- 
lent as  they  were  before.  This  practice  led  up  to  the  question  of 
death  and  accident  insurance.  It  was  through  that  very  fact  that 
a  number  of  insurance  companies  became  such  factors  in  our  min- 
ing operations.  And  then  the  people  who  would  insure  in  those 
companies,  costing  them  a  certain  stipulated  amount,  dependent 


WORKMEN'S    COMPENSATION.  249 

upon  the  pay-roll,  brought  into  the  conditions  a  new  factor  which 
was  almost  as  unsatisfactory,  if  not  worse  than  the  original,  be- 
cause then  we  brought  into  the  case  another  cold-blooded  business 
factor.  We  had  not  only  the  lawyers,  but  we  had  the  insurance 
companies  as  well,  and  in  case  of  an  accident — now  we  tried  this 
ourselves,  so  I  am  speaking  from  the  book — that  insurance  com- 
pany would  prevent  the  owner  or  operator  of  that  mine  from  going 
and  trying  to  settle  with  the  man  or  his  family.  In  case  of  need 
they  wouldn't  permit  you  to  go  there  and  render  assistance  lest  by 
so  doing  you  in  some  way  prejudice  their  case,  their  idea  being  that, 
if  we  did  that,  we  at  once  acknowledged  that  we  were  in  the  wrong, 
and  that  we  were  to  blame  for  the  accident.  So  that  these  two 
things  coming  together  brought  out  the  necessity  of  compensation 
in  some  other  form  which  should  be  equitable. 

I  can  explain  that  by  one  case  if  you  will  pardon  the  personal 
reference,  in  one  of  the  companies  in  which  I  am  interested.  We 
had  an  accident,  and  clearly,  so  far  as  we  could  see,  we  were  in  no 
way  responsible  for  it,  and  I  said  to  the  manager,  "Go  out  to  that 
woman  and  see  if  she  is  in  need,  and  give  her  some  money."  He 
went  out  there  and  gave  her  a  hundred  dollars.  But  she  said,  "I 
may  sue  you."  He  said,  "Go  ahead.  Here  is  a  hundred  dollars 
anyhow.  You  are  in  need,  and  if  you  want  it  to  employ  a  lawyer 
pay  it  to  him."  There  happened  to  have  been  a  lawyer's  runner  to 
see  that  woman,  but  she  fortunately  had  good  common  sense  and 
said  to  herself  and  to' one  of  our  men,  why,  if  the  company  was 
willing  to  pay  me  a  hundred  dollars  to  employ  a  lawyer,  why  don't 
they  do  justice  to  me  themselves?  The  result  was  that  we  gave  that 
woman  quite  a  sum  of  money — didn't  question  a  moment  about 
whether  we  were  responsible  or  not,  and  that  woman  and  others 
in  the  camp  were  similarly  treated.  I  don't  believe  a  lawyer  today 
would  have  a  show  with  them,  because  they  felt  we  were  willing 
to  treat  them  right. 

Just  another  case  in  another  property  where  the  exact  reverse 
took  place.  A  man  was  killed  and  I  said  to  the  manager,  "Go  to 
that  woman  and  see  if  we  can  render  her  any  aid."  When  we  went 
to  see  her,  an  attorney's  runner  had  already  been  there,  she  said 
she  was  going  to  make  us  pay  for  that,  that  we  were  responsible 
for  killing  her  husband,  and  we  would  have  to  pay  for  it.  The  re- 
sult has  been  three  or  four  years  in  court,  and  the  case  is  not  yet 
adjudicated.  Now,  we  would  have  been  glad  to  pay  that  woman 
something,  but  from  the  interference  from  an  outside  source,  we 
were  not  permitted  to  do  what  we  considered  fair  treatment  to  that 


250          PROCEEDINGS  AMERICAN  MINING  CONGRESS 

woman,  not  from  any  feeling  of  liability  on  our  part,  but  from  a 
desire  to  assist  in  the  matter. 

So,  I  say,  there  must  be  a  different  line  of  action  than  the  one 
ordinarily  pursued.  That  any  fund  that  is  created  must  be  put  in 
a  place  where,  independent  of  the  question  whether  the  person  him- 
self is  liable  in  any  way  or  has  been  guilty  of  contributory  negli- 
gence, all  of  the  people  interested  and  dependent  on  him  can  be 
taken  care  of.  And  our  thought  was  that  this  fund  should  be 
placed  in  the  hands  of  the  State  authorities. 

We  have  a  very  strict  law  regarding  the  question  of  mining, 
strict  as  to  the  safety  of  the  mines.  A  mining  inspector  comes  to 
our  mines,  a  State  mining  inspector,  who  makes  a  thorough  exam- 
ination and  if  there  is  anything  wrong  we  must  correct  it  at  once. 
It  is  only  one  step  further  to  take  to  have  that  same  State  inspector 
see  whether  we  are  liable  or  whether  the  person  maimed  is  liable. 
But  is  that  going  to  do  any  good?  It  will  do  good  this  far,  that 
if  we  place  this  fund  to  be  administered  by  some  State  office,  and 
the  State  still  has  jurisdiction  over  our  properties  in  the  way  of 
telling  us  what  we  must  do  to  make  them  safe,  it  seems  to  me  that 
it  is  only  a  logical  conclusion  that  the  State  through  its  inspectors 
compel  the  compliance  with  the  law,  or  pay  a  penalty  for  not  doing 
what  is  required,  and  hence  the  State  should  be  the  party  to  dis- 
tribute this  money.  Then  both  sides,  both  the  employer  and  the 
employe,  must  be  satisfied.  The  main  feature  of  this  method  of 
administering  the  law  is  this  one  fact  of  knowing  the  exact  cost 
per  ton,  which  can  be  added  to  the  cost  of  production.  In  your 
western  properties  here  you  are  not  confronted  with  the  close  com- 
petition and  close  margin  of  profit  that  we  of  the  east,  especially  in 
the  coal  mining  industry,  are  subjected  to.  When  I  tell  you  that 
in  many  of  our  properties  if  we  make  five  cents  a  ton  we  consider 
ourselves  very  fortunate,  you  will  understand  better  what  I  am 
about  to  say. 

Now,  suppose  for  an  instant,  that  one  of  these  great  accidents 
occur,  not  only  would  it  wipe  out  the  entire  profit  of  years  but  it 
might  take  away  the  entire  property  itself.  If  a  stipulated  amount 
can  be  set  aside,  and  we  are  able  at  the  present  time  to  work  out 
in  the  State  of  Pennsylvania  from  the  records  of  the  past  what 
would  be  an  average  amount,  almost  as  closely  as  the  actuaries 
can  calculate  percentage  for  life  and  accident  insurance,  of  course, 
that  doesn't  take  account  of  the  great  accidents  that  are  caused 
by  explosion,  but  I  mean  all  the  other  ordinary  accidents,  and  we 
can  through  a  period  of  thirty  or  forty  years  figure  about  how 


WORKMEN'S    COMPENSATION.  251 

many  accidents  might  take  place.  We  know,  of  course,  that  in  the 
future  we  may  have  more  accidents  than  in  the  past  on  account 
of  the  different  conditions  coming  into  mining.  On  the  other 
hand,  we  know  also  that  those  conditions  will  be  met  through  the 
investigations  that  have  been  made,  and  I  believe  the  common  av- 
erage of  the  past  would  suffice.  From  this  data  we  can  figure  out 
about  how  much  to  tax  the  industry  that  produces  coal  in  Penn- 
sylvania to  take  care  of  all  persons  requiring  assistance  resulting 
from  these  accidents,  and  supposing,  for  instance,  it  were  a  half  a 
cent  a  ton  which  could  be  added  into  the  cost  of  production  and 
thus  paid  by  the  public,  which  is  the  proper  place  to  collect  such 
costs,  I  think  that  every  operator  in  the  State  would  prefer  to  pay 
that  half  a  cent  a  ton  right  into  the  common  treasury  where,  when- 
ever a  man  was  hurt  or  killed,  the  party  that  was  dependent  on 
him  would  receive  a  stipulated  amount  independent  of  whether  he 
himself  were  negligent  or  not,  rather  than  pay  even  a  smaller  but 
indeterminate  amount  by  the  present  practice.  It  would  have  the 
effect  that  the  fund  which  was  created  from  time  to  time  would 
guarantee  to  the  small  operator  with  a  small  capital  the  same 
amount  of  security  as  it  would  to  the  large  one.  It  would  also 
guarantee  to  the  employe  of  that  small  company  the  same  treat- 
ment as  the  employe  of  a  large  company,  for  the  reason  that  he 
would  not  be  dependent  either  upon  the  operator  or  the  owner,  but 
would  look  to  that  fund  for  recompense,  and  I  believe  that 
wherever  this  is  carried  out,  and  when  it  will  be  carried  out  in 
Pennsylvania,  it  will  embody  some  such  provision  as  that  and  it 
will  then  be  fair  for  the  operator,  mine  worker  and  the  public. 
(Applause.) 


WESTERN   NEWSPAPER  UNION 
CHICAGO 


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